Today’s Trading Plan: Bears Creeping In

Technical Outlook:

• The market continued with the same story that it has been engaged in for the past four months and counting… Buy every dip  you can get your hands on. 
• SPX sold off early on, but managed to recover nearly 75% of its losses by the close of the day. 
• SPY volume, as it has done all week, showed extremely weak volume readings, well below average, but did increase for a second straight day. 
• The 5-day moving average continues to provide rising support for the market. That will be tested again today with the futures down hard to start things off. 
• With that said, weak opens have been very problematic for the bulls of late. 
• The volatility index, VIX, rose for a fourth straight day. During this time, the market remains right near its rally highs. 
• SPX 30 minute chart shows some signs of distribution taking place. A sell-off could find support in the 2102-5 area. 
• Rising trend-line off of the 5/19 lows on the 30 minute chart looks to be broken today at the open. 
• For the bulls, they need to maintain the 2111 level as this marks the previous highs in the current rally. 
• The tendency for the bulls of late has been to allow the bears to run the markets lower in the first hour of trading, followed by a consistent rally throughout the remainder of the day. 
• If SPX doesn’t take out the all-time highs soon, speculation will quickly swirl that the market is starting to roll over again. 
• It appears that today’s weakness is a result of brexit starting to nudge its way into the headlines again. 
• I believe, at this point, profits have to be taken aggressively, and avoid the tendency to let the profits run – the market is in a very choppy range that has mired stock price for the past two years. Unless it breaks out of it and onto new all-time highs, then taking profits aggressively is absolutely important. 

My Trades:

• Added a short position to the portfolio yesterday. 
• Did not close out any positions yesterday. 
• Currently 30% Long / 10% Short 60% Cash
• Remain long ZAYO at $27.96 and two other positions. 
• Will look to possibly add 1-2 new positions today if the market can continue pushing higher. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: