Today’s Trading Plan: Bears Trying to Rekindle the Fire

Technical Outlook:

• SPX saw its first significant sell-off in excess of 1% since 2/23. 
• The downtrend off of the 2/11 lows was broken yesterday and lost the 5-day moving average. 
• This sets up for another test of the 10-day moving average. Previous tests of this MA has resulted in the resting point for sellers and the bounce level for buyers. 
• Yesterday’s sell-off wiped out the previous four days of trading gains. 
• It would seem likely, at some point in the future, that SPX will test the 200-day moving average currently at 2021.
• VIX finished higher for a third straight day with plenty of upside before getting overextended. 
• Despite doubling in the previous 9 trading sessions, the T2108 (% of stocks trading above their 40-day moving average) only saw a pullback of 6.1% yesterday. 
• Hard sell-off in oil aided in the equities sell-off as well, pulling back to near the 5-day moving average. 
• Volume on SPY was higher than what we saw yesterday, but in line with what we have been seeing for the past month. 
• 30 minute chart is showing some distribution, but not damage to the technicals at this point. The distribution does point to some additional selling being a possibility here. 
• Gold showing signs of finally weakening after a historic run in January and February. 

My Trades:

• Sold GLD yesterday at $121.13 for a 1.3% profit. 
• Added one new swing position to the portfolio yesterday (short)
• Currently 20% short / 80% Cash
• Remain long SDS at $20.25 (2x inverse short of SPY)
• Will look to add 1-2 new positions and follow the market’s direction 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: