My Swing Trading Approach

I will look to remain light today, while waiting to see whether the bears can break the 200-day moving average on SPX. At which point, I may add some more short exposure. 

Indicators

  • VIX – 7% rally yesterday, and a bull flag on the daily chart, suggests, that a move back above 30 is likely. 
  • T2108 (% of stocks trading below their 40-day moving average): Hard intraday reversal of 25% from highs to lows. Should see a challenge of Friday’s lows. 
  • Moving averages (SPX): Failed to hold the 5-day moving average. Poised to test the 200-day moving average today. 
  • RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Utilities led the way higher with Real Estate. All other sectors finished notably lower, with Technology selling off more than 3.2%. It now has confirmed a head and shoulders pattern, and should see the February lows again. 
patterns to profits email

My Market Sentiment

Yesterday’s intraday reversal was somewhat surprising, as the market was set up for another rally similar to the one back when the market hit its lows in February. Instead, the rally on Monday looks more like the rally from February 6th, that immediately gave way to further selling the following day. 

S&P 500 Technical Analysis

swing trading strategy report 168

Current Stock Trading Portfolio Balance

  • 1 Short Position

Recent Stock Trades – See My Past Performance Here. 

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