My Swing Trading Approach

Nothing took yesterday, one of the more annoying days of trading, as the two trades I came into the day with were quickly snuffed out, and then I tried a low risk day-trade in Netflix that quickly went for nothing. The losses weren’t bad as risk was kept tight, but the price action simply didn’t cooperate yesterday. 

Indicators

• Volatility Index (VIX) – 15% pop takes price back to 20. Look for a lower-high to be put in place to create a bullish divergence for the market. . 
• T2108 (% of stocks trading above their 40-day moving average): 18% decline not as bad it could have been, considering that SPX dropped 40 points yesterday. Still, oversold and weak. 
• Moving averages (SPX): Rejected at the 10-day moving average, lost the 5-day, and held the 200-day MA. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

All eleven sectors finished in the red yesterday. Technology far and wide was the weakest sector with the potential to retest the lows from last week. Utilities continues to consolidate around its recent highs, and remains in great shape going forward. Staples looks to be resuming its downtrend. Energy looking much more weaker and on the verge of breaking a key support level going forward. Financials continue to lag any market strength of late, and shouldn’t be traded here. 

My Market Sentiment

Retest of the 200-day moving average held yesterday, despite a massive sell-off. Pre-market strength suggests a bounce higher, but always be aware of the morning fades. Don’t get too long, too fast. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 100% Cash

Recent Stock Trades – See My Past Performance Here.