Technical Outlook:
- Third straight significant rally on SPX yesterday, and the first time since October 2011 that it has rallied over one percent on three consecutive days.
- Pre-market the futures are up yet again, and could test key resistance at 1947 which, if broken, will create a higher-high for the market for the first time since late December.
- Volume continues to trend very lightly over the last three days and well below average.
- SPX established a higher-high on the 30 minute chart, but like the daily, will face a major test of overhead resistance at 1947.
- Another outstanding day for the T2108 (% of stocks trading above the 40-day moving average) where it rallied 29% to 40, which is the highest reading since 12/4/15.
- VIX rising trend-line that started at 12/23/15 is being tested coming into today. If this holds, could result in some profit taking for the market.
- One of my big concerns toward this market is the fact that bottom was formed on a suspect headline and that kept the market from ever really seeing a true flush or panic moment for the market.
- Oil continues to rocket higher with another day of +8% gains yesterday, and up another +2% to start today. .
- Insane price movements every day being created by computer generated trading (HFT’s) in a highly volatile market marked with enormous headline risk.
My Trades:
- Added one new swing-trade to the portfolio yesterday.
- Currently 10% Short, 90% Cash
- Careful not to play catch up with a rally that has been extremely difficult to get on board with considering its timing around the recent 3-day holiday weekend.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
