Technical Outlook:
- SPX had a marginal rally yesterday unfolding until the final hour of trading wiped out all the day’s progress and finish lower on the day.
- Essentially SPX is stuck in a triangle pattern with the bottom forming off of the July lows and the descending resistance starting from the July highs. Since then the market has been plagued with higher-lows and lower-highs.
- SPY volume yesterday was extremely weak and only about half of what was seen from Wednesday.
- VIX dropped 0.9% down to 13.49.
- T2108 not moving anywhere fast (% of stocks trading above their 40-day moving average) as it finished 2% lower to 33.3%.
- A break below the triangle would be rather bearish for this market, particularly with a close below the 200-day MA.
- SPY 30 minute chart shows a somewhat disfigured inverse head and shoulders pattern forming since August 11th.
- Continue to watch the 200-day moving average which remains stubbornly strong against the recent selling winds of the market.
- A view is emerging that a rate hike in September is off the table.
My Trades:
- Added one new long positions yesterday.
- Closed out FB yesterday at 93.67 for a 0.8% gain.
- 40% Long / 60% cash.
- Remain long: SBUX at 56.37, UPRO at 67.17, AAPL at 114.64
- Bulls must show that it can establish a market rally and hold on to those gains. It will be very hard for me to add additional capital to the market if the bulls don’t achieve this.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
