Today’s Trading Plan: Another Bounce Attempt

Technical Outlook (SPX):

• Mild bounce attempt yesterday, saw the bears step in and send the market lower in the final hour of trading. 
• VIX is currently sitting at 16.87 and did not give up any ground yesterday, rising 1.1%. 
• As shown below, I am looking for a test of the lower channel in the coming days at around 2016-2020. 
• SPX completely outside the lower Bollinger Band for the second straight day. 
• We are looking at a 1/2 percent bounce on SPX this morning in the pre-market. The key here is whether the bears come in to short the move right away, or is this an opportunity to legitimately bounce the market higher. 
• SPX 30 minute chart is showing a a nice breakdown below the consolidation that was formed yesterday. However, the premarket gap up will cause some trouble for that pattern today. 
• Any rally will face heavy resistance at 2065 today. 
• Volume yesterday was a lighter than what we’ve seen in previous down-days. 
• 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 one new position yesterday.
• Did not close out any positions yesterday. 
• Increased the stop-losses on existing profitable positions. 
• 40% Short / 60% cash. 
• Remain long SPXU at 35.30 (ETF Ultra Short)
• Short: CAG at 34.22, AAL at 47.66.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: