Today’s Trading Plan: Crossroad for Bulls and Bears

Technical Outlook:

• Perfecting spinning doji candle put in on Friday, showing and equal balance of buyers and sellers. 
• SPX has a bounce opportunity today off of the rising short-term support level at 2084-5.  
• Not much in the way of scheduled news this week, with the highlight coming on Friday with Consumer Sentiment. Though, Greece continues to play a major role in the fluctuation in the market day-to-day. 
• To give you an idea of how difficult this market is for traders this year, despite a plethora of new record highs on the year, SPX is only up 1.6% on the year. 
• Despite the market being down 9 out of the last 13 trading sessions, SPX has only managed to drop 1.17%. during that same time. That means the selling has only averaged a little less than 0.1% during that time span. 
• A restest on the SPX 50-day moving average on Friday resulted in failure for the bulls. 
• VIX dropped 3.4% and back under the declining trend-line off of the October highs. This resistance has consistently been the Achilles heal of bears trying to find momentum to the downside. 
• SPX confirmed the head and shoulders pattern on the 30 minute chart and appears to be consolidating with an eye on another leg down in the recent selling. 
• Russell index has not felt any impact from the recent selling on SPX as it is currently looking to make another run at its highs. 
• If 2082-5 area breaks today, then a test of 2067, or the March lows, would be come a possibility. 
• Speaking of 2067, if that were to break at some point, would represent a new lower-low for SPX on the daily time frame. 
• The problem with the bulls making new all-time highs during the course of 2015 so far, is that once they are established, nothing else happens; there is no rally that sees a rapid expansion in price. 
• Instead the all-time highs have been quickly sold off by the market in general.
• The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up. 

My Trades:

• Sold SDS at $20.57 on Friday for a 3.4% profit. 
• Did not add any additional short positions on Friday. 
• 10% short / 90% cash. 
• Remain short: WBA at $85.20
• I’ll consider adding 1-2 new short position to the portfolio today. May consider playing to the long side if we get a heavy bounce today. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: