Technical Outlook (SPX):
- Massive breakdown in the markets yesterday that saw SPX decline by over 1.7%.
- Key support at 2065 was violated yesterday.
- As it stands now, SPX is now in negative territory for the year.
- SPX sliced right through the 50-day moving average after trying to bounce off of it early on in the trading session.
- Volume was similar to what we saw on the spike from Friday.
- VIX rose 10.8% to 16.69, which is fairly low considering the amount of selling we have seen of late.
- Another breakdown in T2108 with a 21% drop down to 38%.
- SPX 30 minute chart show s a clear downtrend in place that is still picking up momentum. It blew right through the technical target for a head and shoulders pattern.
- A bounce here today wouldn’t be overly surprising, though I am leaning towards at least another 1-2 days to the down side before we see a legitimate bounce.
- The rising trend-line off of the December lows could see a challenge in the coming days at 2016.
- Always be cognizant of the fact that at any moment the dip buyers can come about and push this market back up.
- Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks.
- 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.
- Increased the stop-losses on existing profitable positions.
- Did not close out any positions yesterday.
- 30% Short / 70% cash.
- Remain long SPXU at 35.30 (ETF Ultra Short)
- Short: CAG at 34.22, AAL at 47.66.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
