Today’s Trading Plan: Bulls Can’t Afford To Let This Market Slip Further

Technical Outlook:

• Hard sell-off yesterday, in a rather surprising manner. Little to no bounce throughout the trading session. 
• Found support at the 20-day moving average. 
• Watch the rising trend-line off of the October lows – It will be in play today at 2074. 
• 200-day moving average has also provided some support/resistance throughout this past year. Could be another opportunity for SPX to find support again. 
• Seasonal and technical factors considered, SPX still has a very solid edge to the upside this month. 
• Numerous factors worked into yesterday’s sell-off which included the massive sell-off in oil yesterday that took it right back down to its August lows. A break in support here could result in a notable problem for the market going forward. Also, Yellen’s hawkish comments startled the market, and on top of that you had the horrific terrorist attack in San Bernadino. 
• VIX rose 8.5% yesterday to settle in at 15.91. 
• T2108 (% of stocks trading above their 40-day moving average) is showing some concerns here as it had one of its biggest moves in weeks by shedding 16% down to settle at 45%
• SPY volume yesterday was surprisingly average despite the heaviness of the sell-off. 
• By breaking the resistance at SPX 2115, it will confirm a massive inverse head and shoulders pattern forming on SPX.
• SPX is back in the trading range that it has been stuck in since 11/19.
• SPY is essentially sitting in the middle of the range that has plagued the market all year long, outside of the August/September sell-off. 
• For twelve years straight, the market over the course of the last 30 trading days of the calendar year, has yielded a net positive gain, and thus reinforcing the concept of the “Santa Rally”.
• A rate hike is expected out of December’s Fed meeting. However, I still would not be surprised if the Fed backed out of raising rates yet again. They’ve been doing just that for years now. 

My Trades:

• Sold MDRX yesterday at 15.44 yesterday for a 4% gain. 
• Sold BIDU yesterday at $211.36 for a 1.8% gain. 
• Sold ETN yesterday at 57.07 for a 1.8% loss. 
• Added two additional long positions to the portfolio yesterday. 
• Will consider adding one to two new long position to the portfolio today, while also managing the profits on existing positions. 
• 60% Long / 40% Cash
• Remain long: AMZN at $673.85, ADSK at $63.63, CRM at $79.86 and three other positions. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: