Technical Outlook:
- Another sell-off that represented rare follow through on the previous day’s selling.
- However, there was a strong surge of buying at the close that wiped out more than 1/2 of the day’s losses.
- That sets up the market up for a possible bounce/squeeze today.
- Ideally, the bears need to keep price action from getting back above 2091 and ultimately get back below yesterday’s lows of 2067.
- SPX futures were down 17 points overnight only to rally back to near break-even on the day.
- VIX saw resistance at the descending trend-line off of the October 2014 highs. It rose 5.9% to 15.15.
- T2108 (% of stocks trading above the 40-day moving average) is falling all over itself, down another 6.1% to 41%
- Very strong volume yesterday on SPY yesterday.
- Rising support off of the March lows should offer a support level for SPX at 2059.
- 30 minute chart of SPX still very choppy in its “look” but showing a possible breakdown forming.
- For the bulls, to regain favor with this market, a push above 2120 becomes absolutely necessary.
- The market chop since mid-February continues to persist and get even tighter as the weeks pass by.
- 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:
- Closed out SDS yesterday at 21.05 for a 2.9% gain.
- Closed out ACN yesterday at 93.71 for a 1.1% loss.
- Added one new short position yesterday.
- 10% short / 90% cash.
- I’ll consider adding 1-2 new positions today.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
