Technical Outlook:
- SPX broke and closed above the triangle I outlined in the chart below. Ideally, I would like to see price move beyond last week’s highs of 2105.
- Walmart reported discouraging earnings this morning which has weighed on futures some as a result.
- A break above 2115 today would greatly increase the odds of testing the all-time highs yet again.
- Also, with yesterday’s price action, the converged 20 and 50-day moving averages were re-gained by the bulls.
- For the bears, the object of their affection should be the 200-day moving average and getting price below it at the close. Of late, that has represented a very stubborn level of support.
- Volume still remains well below average and weak in general.
- VIX finished higher yesterday by closing at 13.02. Remember the hard support at around the 11.70’s where nearly every market reversal has taken place at this year.
- T2108 (% of stocks trading above the 40-day moving average) had a big move of its own yesterday by breaking out and above heavy resistance at 39% and closing at 41% – a 9.4% gain for the day.
- Inverse head and shoulders pattern on SPX 30 minute chart has been confirmed. Not to be confused with the one on the daily chart.
- A view is emerging that a rate hike in September might be off the table.
My Trades:
- Did not add any positions yesterday.
- Did not close out any positions yesterday.
- 50% Long / 50% cash.
- Remain long: SBUX at 56.37, UPRO at 67.17, AAPL at 114.64, NFLX at 123.45, FB at 94.66.
- I have enough capital at work at this point so I am only likely to add new positions today if I am to close another position currently in the portfolio. I could increase portfolio exposure if the market makes large strides and and through key resistance.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
