Technical Outlook:
- SPX down yesterday in sympathy with the negative earnings reactions in AAPL and MSFT. However, the indices did a respectful job of recovering some of the day’s losses.
- Sets up today for the dip buyers and whether they will by this rather light pullback the past three trading sessions after previously failing to establish new all-time highs.
- At this moment, I don’t see the headline risk driving the market lower. For now, Greece is being ignored by the market, while the market is in the thick of earnings season.
- In play today is the 10-day and 50-day moving averages.
- VIX, surprisingly, actually fell yesterday 0.8% down to 12.12.
- SPX 30 minute chart looks a bit distributive and could see another move to 2103 before finding any support.
- My biggest ongoing concern with the market right now is the inability to establish new, clear-cut all-time highs that leads to an expansion of price as well. Instead SPX gets bogged down in the 2120-2130’s range and reverses course each time.
- T2108 (% of stocks trading below the 40-day moving average) showed solid strength yesterday rising 4.3% to 38%.
My Trades:
- Added one new position yesterday.
- Closed out TRIP at $92.69 for a 1.5% gain.
- Stopped out of TWTR at 35.53 for a 2.8% loss.
- 30% Long / 70% cash.
- Remain long: COST at 144.57, JAH at 55.74.
- If the market shows a willingness to start moving higher again today, I’ll add 1-2 new positions. Hedging my existing long positions is an option as well if the market doesn’t show an ability to rally today.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
