My Swing Trading Approach

Less is more in this market, and I intend to do exactly that. I have one short position on this market, and will look to ride it today. I will add more short positions, if key price levels are violated. 

Indicators

• Volatility Index (VIX) – A bounce of 2.5% yesterday, however, VIX remains under the declining trend-line off the 2/5 highs. 
• T2108 (% of stocks trading above their 40-day moving average): A 7.8% drop yesterday, pushing the indicator to 49% and keeping the bearish divergence in place with SPX price action. 
• Moving averages (SPX): 5-day and 10-day moving average continues to trade above price, while the 20-day moving average looms as the next MA to be tested nearby. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Financials bounced yesterday, following four day sell-off, but the bounce was meager. Technology also put together a small rally but found resistance at the 50-day MA. Real Estate looks strong coming out of its bull flag pattern. Healthcare continues to chop around at its highs. Materials showed a lot of weakness yesterday, and looks to possibly make a move back to the 200-day moving average. 

My Market Sentiment

Pre-market weakness on fears of…wait for it…prolonged trade war with China, has the market in a tizzy this morning. What is bad for the bulls is that it threatens the critical 2801 price level that it has managed to hold on to of late. A break of the support level likely puts the 50-day moving average in play, which has held well, since May, or the rising trend-line off of the 5/3 lows.  

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 1 Short Position

Recent Stock Trades – See My Past Performance Here.