My Swing Trading Strategy

I did not add anything yesterday, because I was holding off to see whether the bulls could close above the heavy resistance overhead. It did not. I may add a new position today, if the bulls can come out of the gate strong and maintain that strength. I booked gains yesterday in Spotify (SPOT) for only +0.4%. Didn’t play out as well as what I was expecting. Moving on. 

Indicators

• Volatility Index (VIX) – Fell for a fourth straight day, and now testing the February/March lows. May see a bounce here at 13.41. 
• T2108 (% of stocks trading above their 40-day moving average): I would have expected the bounce in this indicator to be much stronger the last few days, instead, it is sitting at 66% and creating a bearish divergence considering SPX price action is at recent highs, while T2108 is well below them. 
• Moving averages (SPX): Currently trading above all major moving averages. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy continues for a third straight day, to pace the market higher. Healthcare looking to make a move that would break it out of its neckline on the inverse head and shoulders pattern. Basic Materials and Technology showing signs of their rally weakening some. 

My Market Sentiment

The struggle with strong overhead resistance continues on for SPX as you can see in the chart below. However, I have yet to see a sharp rejection, where price turns negative (like we saw last week). Once again, today, SPX will attempt to break through that level.  

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 20% Long.

Recent Stock Trades – See My Past Performance Here.