My Swing Trading Approach

I added one additional short position to my already bearish portfolio on Friday. I could add another one, if the market really took a dump today, but I doubt that I do. However, I could see myself cover my positions today because the market puts in a bottom, or I ride out my current short positions as they currently are. 

Indicators

• Volatility Index (VIX) - Bouncing off of the 200-day moving average, but a long shadow on top of the candle suggests that the move isn't a very strong one. 
• T2108 (% of stocks trading above their 40-day moving average): Two days of this indicator pushing lower, but still above its 5-day moving average. Sitting currently at 35%. Uptrend still intact. 
• Moving averages (SPX): No damage done yesterday, with price bouncing perfectly off of the 200-day moving average and holding the 5-day moving average into the close despite trading below it for most of the trading session. 

Sectors to Watch Today

Not an ideal arrangement on Friday with Staples and Utilities leading the way higher - the only two sectors to do so, while Technology, Materials and Discretionary lagged the most.

My Market Sentiment

Perfect bounce off of the 200-day moving average on Friday, while managing to hold on the existing trend-line off of the October lows. Failed to establish a new higher-high on the daily - that didn't happen, but it did match the previous high. Today is a crossroads for the market. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 2 Short Positions