My Swing Trading Approach

Tech is weak at the open and the rest of the market is following suit. Unless the dip buyers step in, this may result in a day where it is simply better to remain on the sidelines.  

Indicators

• Volatility Index (VIX) – A 5% uptick, but nothing signifcant. Currently sitting at 12.83. Potential for a rally today with the premarket weakness currently underway. 
• T2108 (% of stocks trading above their 40-day moving average): Price action over the last week has really languished, going from 65% down to 54%. Stocks are not fairing well in the current trading environment. 
• Moving averages (SPX): Continues to test and hold the 5-day moving average, for a fourth straight day. 
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Sectors to Watch Today

Financials were the only sector to show any life yesterday. Solid volume with a positive return on the day. Meanwhile, Telecom continues to coil, like it is poised for a bigger move higher. Basic Materials once again tested the 200-day MA which it has bounced off of previously – key day for that sector. Energy, while the chart has been bullish over the last three weeks, recent volatility has made this a very difficult sector to trade. 

My Market Sentiment

The 2801 resistance level, continues to be a difficult barrier for the bulls to push through. Netflix (NFLX) earnings came in last night, and the miss has had an impact on tech stocks early on this morning. If the big tech companies continue to miss, it may result in the index rolling over. Something to watch for sure. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 4 Long Positions

Recent Stock Trades – See My Past Performance Here.