Today’s Trading Plan: Buyers Still to be Found

Technical Outlook:

• The bullish strength of this market since mid-February was on full display Friday when the market gapped down significantly and pushed 16 points lower, bottomed within the first 30 minutes of trading and then rallied 29 points off of those lows throughout the remainder of the day. 
• To put it mildly, gap downs have been the bear’s worst nightmare. Rarely has a gap down been sustained since mid February when the rally started. 
• On SPY, a massive bullish engulfing pattern on the ETF. 
• Strongest volume reading for SPY since 3/18 and right near average levels of late.
• The downtrend off of the July highs becomes the next testing point for this market as it seeks push through its resistance at 2095 an back into the 2100’s.
• 2100 is also significant because a close above this level potentially jeopardizes the two-year long standing head and shoulders pattern that the market has had in development. A close above 2116 absolutely destroys the pattern.
• USO sold off for an eight consecutive day and the ninth time in the last ten trading sessions. The 50-day moving average is being tested here as is the Fibonacci 50% reetracement level.
• Using the weekly chart of the VIX, a rising trend-line off of the July 2014 lows is  being tested as support here. 
• T2108 (% of stocks trading above their 40-day moving average) continues to trade at its highs with 86% of stocks doing so. 
• April has been bullish in nine of the last ten years. 
• SPX 30 minute chart has established a new higher-high on its chart. 
• Once again the 5-day and 10-day moving averages held together.  
• Yellen’s dovish outlook as it pertains to rate hikes has been, in large part, the reason for the massive rally off of the February lows. 
• Support continues to come in on any and all tests of the 10-day moving average. 

My Trades:

• Sold MJN on Friday at $85.81 for a 4.6% gain. 
• Added one new swing-trade on Friday. 
• Currently 40% Long / 60% Cash
• Remain long TLT at $129.52, AMZN at $581.21, NFLX at $102.50.
• Will look to add 1-2 new additional positions today if dip buyers show any desire to buy up the early weakness.  
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: