The latest episode of “wild ramps” at market close, saw 10 straight 5 min red bars.
The S&P 500 and the market as a whole was holding steady for the entire trading session until about 40 minutes remained and then that is when we saw another example of how wild ramps into the close can actually be. This time around it was to the downside, which isn’t the norm, usually it is to the upside, but nonetheless the bears ruled the close.
And while the sell-off felt concerning for swing traders, there wasn’t really anything that caused the market’s bullish thesis to change. It actually still held the 20-day moving average which continues to act as support for buyers. The advancers still had a solid showing and the VIX bare moved at the end of day sell-off.
So I don’t see yesterday’s close, by itself, being a problem for the bulls going forward. It will be key for the market today, to continue holding the 20-day moving average as it has done of late and provide traders with a legitimate bounce off of the MA. Failure to do so will increase the likelihood that the bears will eventually break the MA and ultimately send this market lower.
Yesterday, I posted the SharePlanner Reversal Indicator, and it there is the potential that, while the ramp higher on the chart continues to hold, its slope is starting to flatten and could signal a sell-off, particularly if we see a break of the S&P 500’s 20-day moving average.
In summary, let the market show you what it wants to do. React to what the market reveals, and trade accordingly. Don’t Assume, and don’t hope, and most importantly don’t force your will on the market. Take what comes your way, and you’ll be just fine.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance:
- 4 Long Positions
Recent Stock Trade Notables:
- Intel (INTC) Short at $35.21, covered at $34.46 for a 2.1% profit.
- Nvdia (NVDA): Long at $155.57, closed at $157.53 for a 1.3% profit.
- IBB: Long at $298.24, closed at $303.74 for a 1.8% profit.
- SPXU: Long at $15.68, closed at $15.25 for a 2.7% loss.
- Whirlpool (WHR): Long at $190.46, closed at $195.19 for a 2.5% profit.
- Ferrari (RACE): Long at $84.60, closed at $89.93 for a 6.3% profit.
- Amazon (AMZN): Long at $964.70, closed at $1001.23 for a 3.8% profit.
- American Airlines (AAL): Long at $49.18, closed at $50.62 for a 2.9% profit
- Alibaba Group (BABA): Long at $124.95, closed at $137.51 for a 10.1% profit.
- Starbucks (SBUX): Long at $61.78, closed at $63.68 for a 3.1% profit.
- Western Digital (WDC): Long at $91.24, closed at $89.29 for a 2.1% loss.
- Broadcom (AVGO): Long at $236.65, closed at $241.15 for a 2% profit.
- SPXU: Long at 16.60, closed at $16.98 for a 2.3% profit.
- JP Morgan Chase (JPM): Long at $87.84, closed at $85.98 for a 2.1% loss.
- Micron Technology (MU): Long at $29.00, closed at $28.04 for a 3.3% loss.
- Alibaba Group (BABA): Long at $116.25, closed at $124.09 for a 6.7% profit.
- Southwest Airlines (LUV): Long at $58.35, closed at 57.23 for a 1.9% loss.
- Broadcom (AVGO): Long at $223.63, closed at $228.65 for a 2.2% profit.
- Workday (WDAY): Long at 86.00, closed at 90.32 for a 5% profit.
- Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
- Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit.
- Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit.
- Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss.
- Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
- Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
- UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit.
