Technical Outlook:
- Strong gap up yesterday but no price movement thereafter for SPX as it managed to close just above key resistance at the 2120-2 range.
- VIX should be a worry for bulls here, because it has consistently bounced with authority at its current closing price from yesterday of 12.74.
- It remains a struggle for T2108 to get back above the 50% mark of stocks trading above their 40-day moving average.
- Careful that once an agreement with Greece has been reached, it doesn’t result in a sell-the-news event and you are left with a lot of long positions exposed.
- Breakout resistance on SPX at 2138 which would also crush the previous all-time highs.
- Volume was very weak yesterday.
- SPX 30 minute chart looks for continuation today on the double bottom confirmation from last Thursday, despite the fact that it broke below the neckline on Friday.
- The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up.
My Trades:
- Did not add any new positions yesterday.
- Closed out SDS for a 1.2% loss.
- 10% long / 10% short / 80% cash.
- Remain short XYL at 36.16.
- Remain long FL at 63.70.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
