Technical Outlook:
- SPX struggled yesterday to make additional gains, and now having risen 5 out of the last 6 trading sessions.
- There is a consistent zig-zag price action over the past 5 months that puts at risk the current price action that is on the verge of making new all-time highs.
- Also, the head and shoulders pattern I have mentioned over the past few weeks is still in place. It is currently forming the right shoulder, but will be nullified if SPX hits new all-time highs. To confirm the H&S pattern, SPX needs to drop below 2072.
- 5-day moving average has been holding strong for SPX in recent days.
- VIX is in the low 12’s which is an area that it has been unable to break down and below. Instead there has been consistent reversals that occur at this level. It is literally sitting on this level as of yesterday’s close.
- Potential bull flag over the last two days on SPX 30 minute chart.
- Breakout resistance on SPX at 2138 which would also crush the previous all-time highs.
- Volume continues to weaken considerably over the past two days.
- 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:
- Closed out FL at 65.68 for a 3.1% gain.
- Covered XYL at 37.25 for a 3% loss.
- Did not add any new positions yesterday.
- 100% cash.
- 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:
