Today’s Trading Plan: The Looming Triangle

Technical Outlook:

• S&P 500 (SPX) managed to put together another bounce back rally that was quite simply meaningless in terms of accomplishing anything technically. 
• The declining trend-line from the August highs was tested yesterday and saw a rejection in price with SPX retracing 40% of its gains on the day. 
• Despite breaking it early on, once again the 50-day moving average was unable to see price close above it. 
• Volume on SPDRs S&P 500 (SPY) rally yesterday failed to provide a good reading, coming in at the lowest since August 15th and at levels seen during a half day of trading on Christmas Eve. 
• Rising trend-line off of the February lows are in view again with current support at 2147. Break it, then the next two support levels are 2144 and 2120. 
• Taking the declining and rising trend-lines already mentioned already, you have a triangle that is forming near the highs of SPX. Typically these triangles, at this location, typically results in topping patterns that end badly for the bulls. 
• Crude (/CL) made a big move yesterday on rumors Russia is willing to freeze or possibly cut production, causing oil to spike 3%. Now it is setting up for a move back to the June highs. 
• Nasdaq (COMPQ) is the strongest index by far right now and it had a great opportunityh to establish new all-time highs, but fell short by 2 points. 
• Despite the rally yesterday, the CBOE Market Volatility Index (VIX) barely saw a drop yesterday. 
• Price action on SPX 30 minute chart is absolutely unintelligible over the last 2 weeks. Simply chop-city. It does fall in nicely with the triangle pattern over the past month. 

My Trades:

• Did not add any new positions yesterday. 
• Closed MSFT yesterday at $58.21 for a 1.9% loss. 
• Will look to add 1-2 new swing-trades to the portfolio today. 
• Currently 10% Long / 30% Short / 60% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: