Technical Outlook:
- SPX had a prime opportunity to push price past 2120 today but failed to do so, instead experienced a mild pullback.
- This morning SPY is looking at a significant gap down that will eliminate much of the gains from last Friday.
- The biggest development was the fact that SPY found its way into the gap from the move on Friday. This creates a strong possibility that price will ultimately fill the gap in the short-term.
- Right now it should be considered that SPX remains range bound. Unless SPX can break above 2120, or break below 2072, the SPX has no true direction.
- Light volume on the sell-off today, which hasn’t been seen often on previous sell-offs.
- VIX yet again bounced off of support and rose 7.7% to 13.85.
- T2108 (% of stocks trading above the 40-day moving average) continues to struggle and sport a bearish tone – dropping 4.6% down to 46%.
- The market chop since mid-February continues to persist and get even tighter as the weeks pass by.
- 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.
- Did not close out any positions yesterday.
- 10% short / 90% cash.
- I’ll consider adding 1-2 new positions today (longs) if price gets above 2120 on SPX.
- I’ll consider adding 1 new short position if yesterday’s selling continues into today.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
