Major Price Resistance

My Swing Trading Approach

I booked profits in Alibaba (BABA) yesterday at $183.29 for a +7.8% profit, along with Advanced Micro Devices (AMD) at $24.98 for a +3.7% profit. I added one additional position yesterday but overall reduced my overall long exposure. 

Indicators

  • Volatility Index (VIX) - A much bigger pop than what we have seen in recent days, and with the market opening slightly lower ahead of the open, expect to see the VIX to climb higher in the early going today and test that stubborn 20-day moving average. Up 10% yesterday to 14.85. 
  • T2108 (% of stocks trading above their 40-day moving average): A small decline in the T2108 of 1.2%. Nothing to be too concerned with on the surface, however, the market's breadth quickly deteriorated yesterday as price continues to sell off from the highs. 
  • Moving averages (SPX): Currently trading above all the major moving averages. 

Sectors to Watch Today

Financials saw a huge surge of buying in the early going, but they quickly gave up the large majority of their profits by the close. Technology and Healthcare are both setting up for possible evening star candle patterns or even an island reversal pattern. 

My Market Sentiment

Concerning yesterday, was the notable sell-off from the highs of the day and the squandering of almost all the day's gains. This all took place at a major price resistance level as SPX was unable to break through. 

S&P 500 Technical Analysis

(Click on image to enlarge)

swing trading strategy report 384

Current Stock Trading Portfolio Balance

  • 30% Long.

Click here to download my Allocation Spreadsheet. Get all of my trades that I make real-time by jumping in the  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.