Technical Outlook:
- For the third time in four trading sessions, SPX finished lower on the day.
- Friday was a light volume day due to the holiday weekend, but the selling in the final half hour of trading was very disturbing for traders as the market fell about 5 points and wiped out the day’s the minimal gains on the day.
- If SPX breaks 2120-2122, it could quickly see the selling accelerate and result in a sell-off that takes price back down to the trend-line that started off of the February lows. The currently level of support for that trend-line is 2110.
- VIX remained nearly unchanged closing 0.2% higher at 12.13.
- T2108 (% of stocks trading above the 40-day moving average is showing signs of rolling over with a 6.3% drop down to 50%.
- We still have a higher-high in place currently with SPX, and would need to break 2067 in order to form a new lower-low.
- SPX 30 minute chart shows a great deal of consolidation over the last five trading sessions. Watch for a violation of this range on either side to determine short-term market direction going forward.
- Weekly chart of SPX shows a market in the early stages of a new leg higher. However, there is also a maturing bearish wedge that could be threatened if SPX manages to rally into the 2160’s-70’s.
- 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:
- I added a short position on Friday.
- Did not close out any positions on Friday.
- 30% long / 10% short / 60% cash.
- Remain long: AAPL at 128.45, MHFI at 107.79, FB at $81.00
- I’ll consider adding 1-2 new depending on the direction and strength of the market.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
