My Swing Trading Approach
Should the early morning strength hold, I will look to add 1-2 new long setups to the portfolio this morning.
Indicators
- Volatility Index (VIX) – VIX popped yesterday, but little change to the charts to reverse current bearishness for the index.
- T2108 (% of stocks trading above their 40-day moving average): Huge decline, fueled by the weakness primarily in Materials and Energy. Down 12% to 57%
- Moving averages (SPX): Tested and held the 5-day moving average perfectly yesterday.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Energy is showing itself to be quite dangerous again. Oil, at one point yesterday, looked as if it might crash with the consistent and persistent selling that was taking place. Basic Materials remains a struggle to find any edge going forward as is the case with Industrials. Technology chart remains strong, and should be a focus of one’s trading going forward. Healthcare pullback yesterday could provide a decent buying opportunity.
My Market Sentiment
Heavy sell off fueled by the drop in oil. March highs are acting as serious resistance, and while the bulls are still in control, they will need to break through said resistance very quickly or risk a bigger market pullback.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 3 Long Positions
