My Swing Trading Approach
I will look to add 1-2 new swing-trades this morning, if the market shows it can hold its lows and bounce higher. Otherwise, I will play it cautious and look to book gains while raising my stops.
Indicators
- VIX – Down for fourth straight day, and may be finding some support in the 12’s here l
- T2108 (% of stocks trading above their 40-day moving average): Breadth yesterday was poor, and that was reflected in T2108 with a 2% pullback. Resistance at 73% remains
- Moving averages (SPX): 5-day moving average back above all the major moving averages today. Price is above all the major moving averages, though a test of the 5-day may occur today.
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Sectors to Watch Today
Utilities staged a sharp rebound yesterday, while Energy strings together its third straight, solid rally. Technology lagged in a big way, and still causing fits for traders. I would continue to stay away from Financials particularly with the banks reporting, starting Friday. Discretionary remains in the middle of the pack with steady, consistent gains.
My Market Sentiment
Some caution here with the market having ripped lower on Trump’s $200b list of tariffs against the Chinese. The fact that he did this isn’t anything new, so there’s a good chance that the market will buy this dip early on. The market closed right at the March highs, after breaking the June highs yesterday.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 4 Long Positions
