My Swing Trading Approach

I reduced my long exposure yesterday, after hitting my stops in two of my trades, and adding one new additional trade. With the market gapping higher, I plan to play it cautious today and see whether the bulls can hold the gap up this morning. 

Indicators

• Volatility Index (VIX) – Popped 4.5% yesterday, but still gave up a lot of its intraday gains. Technology and Energy strength yesterday really kept the VIX from popping off. 
• T2108 (% of stocks trading above their 40-day moving average): One of the biggest declines in months -13%, all the way down to 45%. Stocks are really struggling underneath the surface here. 
• Moving averages (SPX): Tested and held the 5-day moving average. Currently trading above all the major moving averages. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy broke out of consolidation yesterday in a big way and led the market as the strongest sector and only one of three sectors that traded higher. Very impressive run, but also overbought, following a rally in nine of the last 10 trading sessions. Healthcare continues to establish new all-time highs. Technology had a hard bounce off of its 50-day moving average. Discretionary struggling following a two-day pullback here at overhead resistance. Financials failing to sustain a breakout as usual, giving up much of last week’s gains. 

My Market Sentiment

Bullish move in the premarket here, that could ultimately lead to a breakout to the upside of the bearish wedge that has formed. There is a lot of headline in the market right now as well, with Trump’s U.N. speech, Trade War with China, Rosenstein’s meeting on Thursday, FOMC tomorrow. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 3 Long Positions

Recent Stock Trades – See My Past Performance Here.