Technical Analysis:

• S&P 500 (SPX) took a breather following the previous day’s gains. Despite selling off, the market only finished 3 points lower, and formed a doji candle inside the previous day’s candle body. 
• The 5-day moving average held up well yesterday following a test of it. The last four trading sessions have seen tests and each time it has held strong. 
• Volume on SPDRs S&P 500 (SPY) fell through the floor yesterday and came in well below average, dropping for a fifth consecutive day. 
• Short-term stochastics show a very overbought market, while the SharePlanner Reversal Indicator shows a market that SPX could be setting up for a much bigger run going forward and into the end of year. 
• CBOE Market Volatility (VIX) is still holding the rising uptrend from the August lows. Though much of its gains yesterday were taken from it, as has been the pattern any time there is strength early on. 
• The bounce in oil (/CL) is still alive, but you’ll want to be careful of the dead cat bounce. 
• As we move away from the election results, the Fed will come more and more into focus and whether they will be raising rates at their December meeting. 
• According to the T2108 (% of stocks trading above their 40-day moving average) we are now at 57.5% which is a huge improvement from what we saw just two weeks ago when only 20% were doing that. 
• Nasdaq (QQQ) have been the leader over the past two days as traders are trying to buy up some of the value plays that have sold off of late. 
• The bounce in SPX and all the other indices, minus the Nasdaq, are showing similar charting patterns to the Brexit bounce. I expect that trend to follow, with a second leg up and consolidation there after. 
• Dow Jones Industrial (DJIA) snapped its 7-day winning streak yesterday. 

My Trades:

• Did not add any new swing-trades to the portfolio yesterday. 
• Did not close out any swing-trades yesterday. 
• Will look to add 1-2 new swing-trades to the portfolio today. 
• Currently 30% Long / 10% Short / 60% Cash

Chart for SPX: