My Swing Trading Approach
Considering what the market does with the current consolidation pattern, a breakdown may warrant some short exposure. I may have some opportunity on the dip buy, but overall, a conservative approach to the long side will likely be necessary today.
Indicators
- VIX – Solid bounce on Friday, but some solid resistance at the 200-day MA.
- T2108 (% of stocks trading below their 40-day moving average): Not able to remain above the 66% level, but not giving up much ground either. Remains at 64%
- Moving averages (SPX): Broke below the 5-day and 10-day moving averages.
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Industries to Watch Today
Real Estate and Utilities headed up the large majority of the market strength present on Friday. The former of which continues to put in a series of higher-highs and higher-lows. Technology also sporting a solid bull flag pattern, while Discretionary continues to march higher, but at a slower pace. Healthcare on the verge of a breakout, but I would stay away from Energy until some stabilizing can be seen. Some bounce opportunities are starting to arise. 
My Market Sentiment
A little bit surprising the Italian Political Risks is having on the the US market this morning. There has been little to no interest by the market up to this point. Nonetheless, it puts the current consolidation pattern below at risk of a breakdown – the key will be where price closes at.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 4 Long Positions
