My Swing Trading Approach

I’m coming into the day with one long position to see whether the bulls can follow through on yesterday’s bounce and hold of the 50-day moving average as well as the hammer candle it managed to form. If the market turns bullish today, I may consider adding one additional long position. 

Indicators

• Volatility Index (VIX) – Spiked as high at 18.38, but couldn’t hold the majority of its gains during the market rally, dropping back down to 15.69 and a nasty shooting star candle, indicating additional downside for the VIX. 
• T2108 (% of stocks trading above their 40-day moving average): Strong candle for the indicator, rallying 4% yesterday to 32%. Also could be looking at the least, a dead cat bounce here. 
• Moving averages (SPX): Broke the 50-day moving average, intraday, again but managed to close above it by the close. Second day in a row that has happened, and putting together some support there. 
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Sectors to Watch Today

Utilities with a massive two-week rally and breaking out, while Staples finally showed signs of life here, despite still looking like a rollover on the daily chart. Financials bounced, but still a sideways trading pattern. Telecom pulled back nicely to the 50-day moving average, and may be ready to bounce in its rising uptrend. Bull flag in the Energy sector. Technology is very oversold. 

My Market Sentiment

The bulls have managed to test, break, and then recover to the 50-day moving average, two straight days now. It is setting up for a bounce off of it, to squeeze the shorts. However, the futures are pointing lower, which could very likely result in another break of the 50-day MA again, today. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 1 Long Position

Recent Stock Trades – See My Past Performance Here.