Technical Outlook:
- SPX dropped below yesterday’s 50-day moving average before quickly bouncing and recovering most of the day’s losses.
- As a result, SPX is sandwiched between the converged 5,10, and 20 day moving averages.
- SPY saw an uptick in the volume yesterday and was above average.
- A look at the SPY weekly chart shows in no uncertain terms the degree of choppiness in the market dating back to February.
- Two gaps were filled yesterday – one from Friday gap up on SPY and the other from yesterday’s morning’s gap down. A rare feat for the market in one day.
- 2120 on SPX – and a close above it – remains the key level for getting bullish on this market again.
- Despite a strong start, VIX only finished 0.1% higher at 13.86.
- Right now it should be considered that SPX remains range bound. Unless SPX can break above 2120, or break below 2072, the SPX has no true direction.
- 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:
- Did not add any new positions yesterday.
- Did not close out any positions yesterday.
- 10% short / 90% cash.
- I’ll consider adding 1-2 new positions today (longs) if price gets above 2120 on SPX.
- I’ll consider adding 1 new short position if yesterday’s selling continues into today.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
