Technical Outlook:
- Yesterday’s move confirmed the breakout for SPX.
- Most importantly was the day that the Russell index had where it played catch up yesterday after lagging the SPX rally. Still not where it needs to be when comparing it to the Nasdaq or SPX.
- VIX is sitting on key support – the same support level that has spurred on numerous reversals in the market. Rose yesterday 2.8% to 12.73.
- 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.
- SPX 30 minute chart confirms the breakout and is out of the previously choppy price range.
- We may very well be on the cusp of a much bigger move higher by the market.
- Volume was weak yesterday but that is to be expected the closer and closer we get to the three day Memorial Day weekend.
- 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.
- Did not close out any positions yesterday.
- 30% long / 70% cash.
- Remain long: C at 54.58, AAPL at 128.45.
- 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:
