Market Weakness

My Swing Trading Approach

I didn't add any new positions yesterday, and as long as the market is able to hold things together, despite pre-market weakness, I'll probably use today's weakness to add another long position. 

Indicators

  • Volatility Index (VIX) - Finally a bullish candle on the VIX yesterday, with a pop of 2.4%, despite the market also moving higher. The VIX is looking for a reason to pop here in oversold conditions. 
  • T2108 (% of stocks trading above their 40-day moving average): It is bizarre to me how much of a move the T2108 has made without the slightest pullback. Goes well beyond a dead cat bounce. Current reading of 62%!
  • Moving averages (SPX): Tested the 50-day moving average yesterday, but failed. In order to avoid a meltdown like last time, will need to break through that level today or tomorrow to keep the confidence of the bulls.

Sectors to Watch Today

Financials rallied incredibly well on the coattails of Goldman Sachs (GS) and Bank of America (BAC)Materials sporting a nice bull flag. Discretionary, not sporting the best chart, as it still shows lower-lows and lower-highs.

My Market Sentiment

The 50-day moving average and the resistance overhead is creating a struggle for price here. Seeing a lot of individual stocks struggling with the same thing and in some cases the 200-day moving average. 

S&P 500 Technical Analysis

(Click on image to enlarge)

swing trading strategy report 359

Current Stock Trading Portfolio Balance

  • 20% Long.

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

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