My Swing Trading Approach

I added a few positions yesterday as the bulls bought the dip off of the 10-day moving average. I plan to be much less active today, as I let my existing positions mature some into profitable ones. I still don’t want to get too heavy to the long side here, as I’ll just take the opportunities the market brings my way, in a very conservative manner. 

Indicators

• Volatility Index (VIX) – Despite a massive break higher, VIX gave up the majority of its gains yesterday to only close 2.3% higher, and inside of the downtrend off of the 2/9 highs. 
• T2108 (% of stocks trading above their 40-day moving average): This is really starting to concern me, because we are not that far off of the all-time highs, yet only 53% of stocks are trading above their 40-day moving average. 
• Moving averages (SPX): Still trading below the 5-day moving average, however, it tested the 10-day MA and held perfectly. 
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Sectors to Watch Today

Financials almost finished in the green yesterday, and while it may be thinking about popping here, there is still a non-committal attitude out of the indnex still. Utilities, showing signs of possibly wanting to roll over. Technology sporting a bull flag pattern here. Discretionary pulling back some here, but should find support at the lows of yesterday. Staples and Materials should still be avoided for now. 

My Market Sentiment

The rising channel was broken yesterday, and while that could lead to a short-term pullback to short-term support, the candle action looks like a bull flag ready to break higher yet again. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 3 Long Positions

Recent Stock Trades – See My Past Performance Here.