Today’s Trading Plan 2065 On Watch

Technical Outlook (SPX):

• SPX once again was not able to break through the 2065 resistance level. 
• After selling off hard on Friday, SPX saw 1/2 of its gains quickly evaporate into the final hour of trading. 
• VIX popped 3.7% on Friday to 16.00. Considering the fact that SPX has been down three straight weeks, it is quite astonishing that VIX remains so far below 20. 
• T2108 shows that only 42% of stocks are trading below the 40-day moving average. A decline of 9% on Friday. 
• Plenty of uncertainty in the market short-term. Euro and oil are major players in the market’s direction currently. Euro is rallying hard this morning. 
• Oil looks to continue its move lower in the near term. 
• Strong short-term support for SPX  at the 2040 price level. Break that area, and the market should drop hard into the 2010’s with little difficulty.  
• SPX unable to maintain the 50-day moving average. 
• 30 minute chart shows a possible double bottom formed on SPX. 
• Strong day of volume for SPX on Friday. 
• Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
• The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up. 

My Trades:

• Added two new positions yesterday. 
• Did not close out any positions yesterday. 
• Will look to add new long positions on a break above 2065, remain short otherwise. 
• 20% short. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: