Technical Outlook:
- SPX continued its sell-off for a fifth straight day.
- The market traded higher all day long and reacted positively to the FOMC Statement until the final thirty minutes of trading where it sold all of its gains, and finished lower on the day.
- SPX still remains below its 50-day moving average.
- Most concerning though, is the fact that price went right to short-term resistance, and the 20-day moving average and sold off immediately thereafter.
- If the sell-off continues, 2025 would likely be the next level for the market to test, which is the May lows. Break that level, then you have a confirmed double top pattern.
- SPY volume fell off yesterday (surprising for a FOMC day) but still remained well above average.
- VIX remains relatively choppy here with back to back reversal patterns in opposite directions.
- The market is due for a short-term bounce and may finally get it today, but with brexit next week, any bounce may be short-lived.
- I believe, at this point, profits have to be taken aggressively, and avoid the tendency to let the profits run – the market is in a very choppy range that has mired stock price for the past two years. Unless it breaks out of it and onto new all-time highs, then taking profits aggressively is absolutely important.
My Trades:
- Sold UPRO at $65.40 yesterday for a 0.6% profit.
- Sold RHT yesterday at $77.12 for a 0.2% profit.
- Sold CVX yesterday at $100.93 for a 1.9% loss.
- Cut the long positions out of the portfolio once the market showed signs of wanting to give up the day’s gains.
- Did not add any new positions yesterday.
- Looking for a better risk-reward opportunity to get short on this market – preferrably off of a dead cat bounce.
- Currently 100% Cash
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
