Bulls Need To Put Together A Substantial Rally Today
My Swing Trading Approach
I'm not looking to add new positions to the portfolio unless this market can show itself capable of sustaining a bounce.
Indicators
- VIX - Dropped 7.5% but remains elevated at 27. Paired much of its losses with an end of day rally. I expect that this will come down further in the days ahead.
- T2108 (% of stocks trading below their 40-day moving average): Actually managed a 3% rally yesterday to close at 24. It still remains oversold.
- Moving averages (SPX): Rejected at the 5 and 50-day moving averages yesterday. Also expect a 5/50-day downside crossover.
Industries to Watch Today
All the sectors were down yesterday, except for Industrials which were flat on the day. Utilities have now dropped more than 10% from its December highs.
My Market Sentiment
Struggled with overhead resistance yesterday with a broken trend-line as well as two moving averages. Bulls need to put together a substantial rally today to put off the fears of Tuesday being just a dead cat bounce.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 5 long positions
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It was a dead cat bounce and was somewhat unexpected. The issue is those in power need to stop talking down the dollar, especially if we are going to run massive deficits again and are going to fight over government budgets and the debt ceiling every other month. The dollar is tied to bonds which we must sell in ever increasing amounts.