Technical Outlook (SPX):
- On Friday, SPX saw its biggest sell-off since Friday, 2/6/15, while closing below its 10-day moving average for the first time since 2/3/15.
- For now, the uptrend of SPX is not jeopardizing, but the bulls need to pull it together here real soon, or the bears may become inspired yet again. Currently SPX is down 3 of the last 4 trading session and 5 out of the last 7.
- A push below 2085 would be a significant problem for the bulls moving forward, would represent a break in key support and a lower-low for SPX.
- Volume, while still below average, picked up significantly on Friday from what we saw the previous four trading sessions.
- Some support on the daily chart at 2000 that could represent a bounce area opportunity for the market.
- Head and shoulders pattern on SPX 30 minute chart today could confirm on a move below 2102.
- Even with Friday’s sell-off, VIX dropped 4.1% to 13.34.
- Oil is continuing the trend lower and could be a problem for the SPX in terms of advancing higher.
- Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks.
- 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:
- Did not close out any positions yesterday.
- Added one new long position yesterday.
- 50% Long / 50% cash.
- Will look to add another new long position today.
- Remain long DD at 77.19, VZ at 49.29, DHR at 87.75, AAPL at 130.00
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
