Today’s Trading Plan: More Back and Forth

Technical Outlook:

• As it always does, the S&P 500 (SPX) managed to bounce following a hard sell-off the day before to erase nearly all the losses on the day.
• What is most peculiar though was the failed attempt by the bulls to push the market over the declining trend-line from the all-time highs established back in August. Instead there was a sharp sell-off in the last 15 minutes of trading. 
• For the bears here, the key will be to break price on SPX back below Thursday’s lows, and ultimately back below the 2140 level. 
• The 50-day moving average is still providing some problems for the bulls going forward. 
• Volume on SPDRs S&P 500 (SPY) fell slightly on Friday, but remained well above recent averages. 
• On the 30 minute chart, SPY broke out and above the triangle established during the month of September. but fell back below the break out level at the close,s Friday afternoon. 
• Nasdaq (QQQ) remains in a healthy state with price consolidating right below its all-time highs. 
• Going back to 9/16, the 20-day moving average remains incredibly strong for the Nasdaq. 
• Oil continues its push higher, looking to increase its win streak to four days, and breaking above the September highs and thereby establishing a higher-high. 
• Massive meltdown in the CBOE Market Volatility (VIX) on Friday, as it dropped back down to 13.29 and towards the rising trend-line off of the August lows that has been a source of market reversals in equities. 
• The number of stocks trading above their 40-day moving average increased 19% on Friday, to 50%. 

My Trades:

• Covered my 3 short positiosn on Friday for a small loss. 
• Did not add any new positions on Friday. 
• May add 1-2 new swing-trades to the portfolio today. 
• Currently 0% Long / 0% Short / 100% Cash

Chart for SPX: