My Swing Trading Approach

The sell-off on Friday, cast a dark cloud on the market as Amazon earnings was unable to lift the market as most expected. I am out of tech for now, and will will keep my portfolio light going into the week, and will only add new positions if the market can turn the corner and bounce back from its sell-off on Thursday and Friday, and hold the 2801 price level. 

Indicators

• Volatility Index (VIX) – A 7% pop on Friday, but was trading twice as higher early on. Still remains in a sideways trading range. 
• T2108 (% of stocks trading above their 40-day moving average): Hit hard with a massive sell-off of 14.5% on Friday and now less than 50% of stocks are trading above their 40-day MA. Threatening its rising trend-line off of the 2/6 lows
• Moving averages (SPX): The 5-day moving average broke, while the 10-day MA is being threatened. 
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Sectors to Watch Today

Technology was flushed on Friday and with incredibly strong volume that shows investors are starting to book their gains in the trade. Apple (AAPL) earnings will be key on Tuesday to sustaining the tech sector. Financials are holding up quite well, having consolidated over the last four trading sessions. Telecom showing relative strength of late, while Discretionary has a lower-high in place, and looks to trade lower from here. 

My Market Sentiment

Friday’s sell-off caught trader’s by surprise, as the Amazon (AMZN) earnings were faded after a strong open. I am most interested in whether the bulls can hold 2801 this week. The Nasdaq has weakened quite a bit as well as small caps as a whole, and poor market breadth has me questioning whether the bulls are still willing to keep buying this current rally. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 2 Long Positions

Recent Stock Trades – See My Past Performance Here.