Today’s Trading Plan: Europe Still In Play

Technical Outlook:

• SPX snapped the four-day winning streak. The final hour of trading came to the rescue of the bulls, by erasing 1/3 of the losses. 
• The bounce took place at the 5 & 20-day moving average. 
• Futures are down heading into the open and look to open up at/near yesterday’s lows. 
• Volume on SPY increased yesterday and slightly above average volume readings. 
• Massive convergence of moving averages – the 5, 10, 20 and 50 moving averages are all within 8 points of each other on SPX. 
• Argument could be made that a bearish kicker was formed on SPY yesterday. 
• For the bulls: need to get back above Friday’s closing price. 
• For the bears: need to break below the double top confirmation level currently at 2030. 
• VIX stumped at the resistance area around the 16.40’s. 
• Lots of resistance in the 2110’s for SPX 30 minute chart. Also, lower-lows and lower-highs in place. 
• In general Q3 doesn’t ten to be a very good quarter historically for stocks. In recent past that has also been the case. Last August, there was an extreme sell-off. 
• Dip buyers aren’t dead yet. They finally came to bat in the final hour yesterday. 
• Market is assuming that rate hikes are pretty much off the table for all of 2016. 

My Trades:

• Added one new short position to the portfolio yesterday. 
• Did not close out any swing-trades yesterday. 
• Will look to add 1-2 new trades today. 
• Best risk/reward currently is to the downside. 
• Currently 30% Short / 70% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: