Today’s Trading Plan: Another Run At All-Time Highs

Technical Outlook:

• Bulls managed to string together two successful days of trading that will now put price right below the declining trend-line on the S&P 500 (SPX) downward trend-line off of the all-time highs that was achieved back in August. 
• Volume on the SPDRs S&P 500 (SPY) actually increased yesterday and was well above recent averages. 
• Yesterday’s rally was significant for the bulls because it allowed for price on SPX to climb back over the 5 and 50-day moving averages. 
• Crude (/CL) rallied strong yesterday finishing 5% higher on a news of a possible cap on production. United States Oil Fund (USO) attempting to break the downtrend today off of the August highs. In doing so, it would break out of a nice triangle pattern going back to August as well. 
  
• SPX 30 minute chart shows a nice series of higher-lows following the 9/12 bottom, but needs to still establish a higher high too. 
• The same minute chart sporting an inverse head and shoulders pattern going back to late August. 
• CBOE Market Volatility Index (VIX) looks to test the rising trend-line off of the August lows today. There has been some selling when this trend-line has been tested over the last two months, including the large sell-off on 9/9. 
• Nasdaq (QQQ) is on the verge testing its all-time highs again. 
• The number of stocks trading above their 40-day moving average has increased by 22% yesterday, with 53% of stocks now above it. 

My Trades:

• Added one long positions and one short position yesterday. 
• Covered two of my short positions yesterday. 
• May add 1-2 new swing-trades to the portfolio today. 
• Currently 40% Long / 10% Long / 50% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: