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:
