Today’s Trading Plan: Bounce or Drop Time

Technical Outlook:

• A sell-off on Friday on S&P 500 (SPX) but ultimately saw the dip buyers rescue it off of the lows of the day during the last two hours of trading. 
  
• It was an “inside” day on the candles, where price action was captured inside the trading body of the previous day. 
• SPDRs (S&P 500) SPY saw a slight increase in volume from the day prior and it continues to trade well above recent averages. 
• This week will be ultimately decided by the actions of the Federal Reserve and the Bank of Japan. Both are likely to create large reactions in the stock market, based on their monetary decisions. 
• With Friday’s sell-off, SPX finished a smidge below its 5-day moving average. Ultimately, the price action of SPX is wedged between 2150 and 2120. Look for a break of either to determine the market’s direction going forward. 
• CBOE Market Volatility Index (VIX) took a hit on Friday, despite the sell-off in equities, dropping 5.7% down to 15.37. The VIX over the last two days has continued to melt away.  
• Nasdaq (QQQ) continues to hover near its all-time high and continues to be the strongest of all the indices. 
• Crude (CL/F) continues to trend lower and near the September lows. A break of those lows would lead to a move back down to the Augst lows in the $39’s. 
• The price action around the 2120 level and yesterday’s bounce that we saw, reminds me a lot of the bounces we saw at the 2040 level back in April and May, and all throughout 2015. 
• Crude (/CL) looks to break the September lows and likely move on toward the August lows.

My Trades:

• Sold STX on Friday at $36.99 for a 1.7% profit. 
• Sold BWA at 34.82 on Friday for a 1.1% loss. 
• Added three additional swing trades yesterday. 
• Added 3 new swing trades to the portfolio yesterday. 
• May add 1-2 new swing-trades to the portfolio today. 
• Currently 10% Long / 30% Short / 60% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: