Technical Outlook:
- SPX pulled back on Friday for a second consecutive day, albeit barely.
- Most impressive was the pullback to the 5-day moving average on SPX and SPY and the immediate bounce thereafter.
- Volume was incredibly light on Friday, though higher than what we saw on Thursday, it was still below average readings.
- SPX is poised to breakout and confirm the double bottom move by establishing a higher-high in the market for the first time since 12/29.
- This bottom is showing signs of being similar to that of what we saw in late September of last year when the market bottomed for a second time then went on a monster rally thereafter.
- SPX 30 minute chart has put together a bull flag pattern that it will likely confirm at the open today.
- The 50-day moving average could be in play today, and may be a point of resistance for the market. It hasn’t had a true test since last December.
- VIX continues to deteriorate and despite another day in the red for SPX, VIX continued to melt away, dropping 5.1% down to 20.53. Today’s open will likely drop it below that pivotal 20 level.
- Also worth noting on the VIX was the fact that it broke the support level at the 50-day moving average and rising support off of the late December lows.
- T2108 (% of stocks trading above their 40-day moving average) held strong remains at the 40% level with a strong bullish tilt to it.
- Watch for whether USO can break the down trend off of the November highs. It is poised to test this resistance level again today.
- 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 two new long positions to the portfolio Friday.
- Did not close out any swing-trades.
- Currently 20% Long, 80% Cash
- Will look to add 1-2 new positions to the portfolio with a trending market to the upside.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
