Technical Outlook (SPX):
- Hard intra day sell-off yesterday that saw price stabilize off of the 20-day moving average and dip buyers jump in to rally off the lows and erase 1/2 the days gains.
- Despite the market being down 8 out of the last 11 and 5 out of the last 6 days, SPX is only about 1% off of the all-time highs.
- If the market goes down today, look for support at 2088.
- SPX needs to at least get back into the short term trading range which is above 2102, and ideally back above 2117.
- VIX closed at 14.23, rising 2.7%.
- T2108 (% of stocks trading below 40-day moving average) is showing signs of weakening.
- Volume starting to pick up on these sell-offs.
- SPX 30 minute chart looks bearish with a breakdown below 2105 area and a dead cat bounce with yesterday’s rally off the lows.
- Morning strength takes price right up to resistance on the 30-min chart.
- Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks.
- 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 position yesterday.
- Closed out DHR yesterday for a 2.2% loss.
- Closed out VZ yesterday for a 0.5% loss.
- 40% Long / 10% Short / 50% cash.
- Remain long DD at 77.19, AAPL at 130.00, VMW at 85.73
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
