Technical Outlook:
- SPX pulled back hard yesterday, and gave up nearly all of the previous day’s rally.
- 1947, which is also the previous highs has rejected price and sent it lower. Discussion about a retest of 1812-1810 will really pick up steam today, as the market is now stuck between the two price points.
- SPX lost the 5-day moving average yesterday.
- SPY volume was slightly better than what was seen the day prior but still well below recent averages and in line with what has been seen over the last two weeks of trading.
- Going forward, the 50-day moving average will be considered a tough challenge for price to break through.
- Oil seeing renewed weakness and the possibility to retest its recent lows.
- VIX broke its six-day losing streak by popping 8.3% to 20.98 – back above the 20 level.
- Minor pullback in the T2108 (% of stocks trading above their 40-day moving average), dropping 9% back to 43.56.
- A number of gaps that have the potential to be filled on SPY in the coming days. The gap from 2/17 will be challenged today.
- Despite weakness yesterday and in the pre-market today, SPX still has established higher-highs and higher-lows and will have to break below 1902 to create a lower-low.
- Insane price movements every day being created by computer generated trading (HFT’s) in a highly volatile market marked with enormous headline risk.
My Trades:
- Added one new short position to the portfolio yesterday.
- Did not close out any positions yesterday.
- Currently Long FB at $104.46.
- Currently 20% Long, 10% Short, 70% Cash
- Will look to add 1-2 new positions to the portfolio as long as the current uptrend is not compromised.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
