Today’s Trading Plan: More Inside Days

Technical Outlook:

• Second straight “inside-day” for the S&P 500 (SPX) where price closed inside the body of the previous day’s price action. 
• There is a rising trend-line off of the September lows that continues to hold strong for the bulls. 
• Couple that with the declining trend-line from the August all-time highs, and you have yourself a nice triangle pattern. 
• Yesterday marked another lost opportunity by the bears to drive the market notably lower, by allowing for the bulls to ramp the market higher in the afternoon trading. 
• There has been a significant amount of back-and-forth by the market in recent days where neither side can sustain any sort of rally or decline. 
• A positive finish today would market the fifth straight day of “up-down” price action on SPX. 
• Volume on SPDRs S&P 500 (SPY) was slightly below average yesterday and well off of the above average volume seen of late. 
• CBOE Market Volatility Index (VIX) continues to show an inability to sustain any upside momentum – instead it continues to get pummeled on a daily basis. 
• The rising trend-line from the September lows has rising support today at 2153. Be sure to watch that level today if there is a sell-off. 
• 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 five days, and breaking above the September highs and thereby establishing a higher-high. 
• The number of stocks trading above their 40-day moving average fell by -9.1% yesterday to 45.5%

My Trades:

• Did not close any swing-trades yesterday. 
• Added two short positions and one long position yesterday. 
• May add 1-2 new swing-trades to the portfolio today. 
• Currently 10% Long / 20% Short / 70% Cash

Chart for SPX: