Technical Outlook:
- Yesterday’s rally resulted in a blip on the radar. Very unimpressive, in that it gave up nearly 60% of the day’s gains by the close of the day.
- 2100 was as high as the SPX could get and is where the immediate selling took place at.
- Even 2085, which was quite a surprise could not be broken by the end of the day.
- The 10 and 20-day moving average could not be broken and held on to, into the close.
- Brexit jitters continue to dominate, though the “remain” camp seems to still have a solid advantage at this point still.
- There is a little-talked about trend-line off of the 3/10 lows that have has been an excellent dip buying level for the market of late. The bears need to break this level at 2053 if they want the momentum to swing their way.
- Janet Yellen talks today at 10am which will no doubt cause some price volatility as well.
- Most concerning for the bulls yesterday was the huge lack of volume on the SPY during their rally yesterday. In fact it broke a string of six consecutive days of above average volume readings.
- VIX bounced off of the 16.50’s yesterday which if you remember, used to be a very strong resistance level. Now it is support.
- The main objective for the bulls today should be to get price back above 2085 then 2100.
- SPX 30-minnute chart shows a confirmed inverse head and shoulders pattern that has lost practically all of its momentum.
- The choppiness and unpredictable nature of the market between 2040 and 2138 continues with price just bouncing and dropping every which way.
- I believe, at this point, profits have to be taken aggressively, and avoid the tendency to let the profits run – the market is in a very choppy range that has mired stock price for the past two years. Unless it breaks out of it and onto new all-time highs, then taking profits aggressively is absolutely important.
My Trades:
- Added two new swing positions to the portfolio yesterday.
- Did not close out any positions yesterday.
- Will look to add 1-2 new positions today depending on the market’s direction.
- Currently 20% Long / 10% Short / 70% Cash
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
