Technical Outlook:
- SPY yesterday managed to engulf the previous day’s candle body.
- SPX managed again to show strength and a willingness to buy when the 5-day moving average was tested.
- Volume on SPY is dramatically weakening this week due the holiday weekend ahead, and I suspect it will be even worse today.
- Watch 2107 – the trend-line off of the February lows of SPX. If that price level breaks, so does the rising support level.
- Massive drop in VIX yesterday which exhibited a massive breakdown below the key support level that was rising off of the July lows. Dropped 6% down to 12.11.
- Since last Friday, the T2108 (% of stocks trading above the 40-day moving average) has really struggled to find any traction. It is a rare site to see SPX trading at new all-time highs, and T2108 only at 53%.
- Oil has shown far greater volatility in the past few days then what we had previously seen over the past two months.
- SPX 30 minute chart has consolidated over the past three days.
- 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:
- Did not add any new long positions yesterday.
- Closed out C yesterday at 54.96 for a 0.7% gain.
- 30% long / 70% cash.
- Remain long: AAPL at 128.45, MHFI at 107.79, FB at $81.00
- I’ll consider adding 1-2 new long positions to the portfolio today as long as SPX stays above 2120.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
