• connect 4

Technical Outlook:

  • Day 3 of the sell-off ws equally impressive, faking out the bulls early on only to drop hard in afternoon trading. 
  • 20-day moving average was breached. connect 4
  • Volume on SPY was well above average, very impressive, and increased for a fourth straight day. 
  • Most impressive though was the VIX chart that rose another 23% and is now trading abve 20 at 20.97. 
  • Above 20 is considered the place where the market contracts at. This blows through the resistance that was at the 16/17 area. 
  • This is the highest closing for the VIX since February 23rd of this year. 
  • I think we are in a distribution phase here. I am looking to short the bounce at this point. VIX is insanely high, and the market overall is showing a change in its character. 
  • Dip buying has been lacking for the second straight day. No attempts taking place whatsoever. 
  • T2108 (% of stocks trading above their 40-day moving average is dropping fast and down to 53%
  • Above 2100 a lot of rallies go on to die. That is again what we are seeing here. Weakness suddenly creeping in and the bulls fleeing. 
  • Choppy support on the 30 minute chart of SPX yesterday failed to hold at 2086
  • The rising trend-line off of the February lows was broken yesterday on SPX. 
  • As a possible brexit approaches, expect the volatility to increase as well. 
  • 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:

  • Covered QQQ at $108.92 yesterday for a 1% profit. 
  • Sold MMM yesterday at $167.46 yesterday for a 1.8% loss. 
  • Added one additional swing-trade yesterday. 
  • Currently 10% Long / 90% Cash
  • Have the flexibility to go either way the market wants to take me today. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 6-14-16

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