My Swing Trading Strategy

Profits were booked in Regions Financial (RF) for a +3.1% profit. I also closed out Square (SQ) at just a shade above break even due to the earnings and market pressures. That became a mute point for the stock though. I added one position yesterday, and will look to add one more today too.

Indicators

Volatility Index (VIX) – The VIX closed at 12.74 and still feeling the affect of the downward trend-line off of the May highs. It is testing support levels in the lower 12’s that has consistently led to hard bounces over the past year.
T2108 (% of stocks trading above their 40-day moving average): A 9% decline in this indicator yesterday puts the indicator back to 60%. Breadth in the broader market yesterday was very bearish, and a concern going forward.
Moving averages (SPX): The 5-day and 10-day moving averages should cross back to the upside. I thought it would yesterday but didn’t. SPX currently trading above all major moving averages.
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Sectors to Watch Today

All of the market’s sectors yesterday finished lower, but it was Staples and Utilities that showed relative strength. The latter is working on a double top pattern that could confirm over the course of the next week. Energy remains a sector that I really don’t want nothing to do with. Yesterday’s decline was quite substantial. Technology obviously pulled back yesterday, but its daily chart remains very healthy still.

My Market Sentiment

Earnings came in mixed with Amazon (AMZN), Alphabet (GOOG) and Intel (INTC) reporting. However, futures are higher, and could see the market rally today. However, don’t be surprised if the market sells off following the open and fills the gap as that has been the case often of late. The 20-day moving average continues to provide solid support for the market underneath and should be watched going forward.