Today’s Trading Plan: Breaking Price Barriers

Technical Outlook:

• Market continued Day 3 (technically Day 4) of the dead cat bounce and not showing signs of relenting this point. 
• Yellen is testifying before congress, Greek Parliament is voting on the deal, and Beige Book due out later today – a busy news day. 
• VIX dropped another 3.8% yesterday to close at 13.37. A move into the 12’s looks to be in short order for it before there’s any significant sell-off again. 
• T2108 (% of stocks trading above the 40-day moving average) continued its massive rally – up another 8.5% to 41.4%. It has rallied almost 100% since its lows from a week ago.
• Volume fell for a fifth consecutive day and was well below average. A common trait as risk is on, and price starts trending higher. 
• The Head and shoulders pattern is at risk today – a rally above 2129 would nullify the bearish pattern.
• Declining resistance off of the May highs is currently at 2125.
• And of course there is price level resistance at 2120, as has been the case since February of this year.
• While the market is range bound, it is difficult to add additional positions to the portfolio because there is no hard trend to play. Instead remaining nimble and flexible to ever changing market conditions is absolutely key.
• SPX closed above the 50-day moving average yesterday.  
• Double bottom on 30 minute SPX chart has been confirmed with Monday’s move above 2085. This could create a target as high as 2025. 
• The market doesn’t care about the economy nor earnings. That is not what is driving it. The market cares about what the Fed is doing to keep equities propped up. 

My Trades:

• Did not sell any positions yesterday. 
• Did not add any new positions yesterday. 
• 30% Long / 70% cash. 
• Remain long: UPRO at 66.55, FB at 90.10, TSLA at 261.50.
• Will look to add 1-2 new positions today to the portfolio. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: