Today’s Trading Plan: Throwing In A Huge Reversal Candle

Technical Outlook:

• SPX tested, broke, recovered and bounced ultimately bounced hard off of the 200-day moving averages. 
• It has been noted t hat this was the one-day reversal in the S&P 500 since October 2011. 
• This reversal seen yesterday was very similar to that of the October lows that were put in and then again off of the February lows. Both of which led to strong rallies. 
• SPX managed to reclaim the 5-day moving average. 
• Head and shoulders neckline that has been forming since early April saw its neckline breached by yesterday’s price action. This doesn’t nullify the pattern, but it does throw it into question. 
• There is a strong possibility the market rallies going forward despite the early morning weakness. 
• ES futures were down at one point as much as 31 points, but has recovered about half of those losses so far.
• VIX showing signs of stalling out, down 5.4% to 16.09.
• T2108 got all the way down to 21, before bouncing nearly 50% off of those lows to finish at 30%.  
• SPX 30 minute chart needs to see a move above 2085 to put in its first higher-high and break the downtrend. 
• Volume was very strong yesterday on SPY. 
• Greece remains a significant headline risk to the upside and downside. Be ready to respond accordingly. 
• Bears need to get price back yesterday’s lows to re-inspire the bears.
• 2039 is another major support level to watch here. 
• 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:

• Closed out my three short positions yesterday to reset and monitor the market actions going forward. The large reversal candle yesterday was a game changer. 
• 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: