Technical Outlook:
- SPX has been on a strong run over the past 6 days, finishing higher during five of them.
- The ultimate key for SPX is whether it can establish new all-time highs. This could lead to further, rapid price expansion.
- The market is no doubt overheated from the current move, but that doesn’t mean it will immediately roll over.
- Technically speaking, SPX is very much range bound still and in the thickest area of resistance on the chart.
- VIX is a major concern here – yesterday it dropped all the way into the high 11’s which is where every significant reversal of this year has started at. This is a support level that dates back to July of last year, and hasn’t been able to be broken as of yet.
- T2108 (% of stocks above the 40-day moving average) rose another 11% to 43%
- Since 7/10, a very steady dose of higher highs and higher lows are in place.
- Volume on SPY increased for a second straight day and came in at average levels.
- Besides making new highs, breaking above the June highs will be critical for the market as it would break the downtrend that started off of the May highs and essentially establish a higher-high while also nullifying the head and shoulders pattern no the daily chart.
- Double bottom target on the 30 minute chart looks to be reached today at 2125.
- While the market is range bound, it is difficult to add additional positions to the portfolio because there is no sustained trend to play. Instead remaining nimble and flexible to ever changing market conditions is absolutely key.
- The market doesn’t care about the economy nor earnings. That is not what is driving it. The market cares about what the Fed is doing to keep equities propped up.
My Trades:
- Did not close out any positions yesterday.
- Added one new long position yesterday.
- 20% Long / 80% cash.
- Remain long: FB at 87.62 (correction from yesterday which stated I was long from 90.10).
- Will look to add 1-2 new positions today to the portfolio.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
