Technical Outlook:
- SPX broke 2120 yesterday and closed at new all-time highs – a monumental break for SPX considering how many times it closed just below this resistance level and sold off there after
- Volume was in line with what we saw on SPY the day before but still slightly below average.
- VIX slightly below the key support level on the VIX that has led to numerous reversals in recent months.
- Huge bounce out of T2108 yesterda (% of stocks trading above 40-day moving average) closing at 51%.
- 30 minute chart of SPX is still very choppy.
- The idea here with SPX moving above 2120 is for it to hold this support level in the coming days and finally put an end to the non-directional movement of the market from the past five months.
- A look at the SPY weekly chart shows in no uncertain terms the degree of choppiness in the market dating back to February.
- 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:
- Added one new long position yesterday. .
- Closed out my short position yesterday.
- 10% long / 90% cash.
- 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:
