Technical Outlook:
- SPX started the dead cat bounce on Friday, after a failed attempt the day before.
- Dead cat bounces can last far longer than one might expect. Today the market is attempting to rally higher off of news of a deal on Greece being reached.
- However, the deal must be pushed through its parliament, and that is not a sure thing.
- SPX should be able to rally up to the 2098-2100 range with little to no resistance. Some resistance today should be found at the 20-day moving average at 2087.
- Volume remained above average on SPY but over all has declined each of the past three days.
- SPY candles the last two days, though finished higher overall on the day, has little to no price momentum during market hours.
- The key for SPX will be to break 2085 today and hold it, for the 30-minute chart would indicate a double bottom pattern is confirmed as well as a break out of a nice base. On the daily it would get price above 7/2 highs.
- VIX formed a bearish kicker on Friday, dropping 16% down to 16.82.
- T2108 (% of stocks trading above the 40-day moving average) had one of its best bounces of late popping 38% to 32.6%.
- The market doesn’t care about the economy nor earnings. That is not what is driving it. The market cares about what the Fed is doing to keep equities propped up.
My Trades:
- Sold AAPL at $123.55 on Friday for a 2.5% gain. Reached key resistance and decided to sell there and capture profits.
- Added one new long position on Friday.
- 20% Long / 80% cash.
- Remain long: UPRO at 66.55.
- Will look to add 1-2 new positions today to the portfolio.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
