• greener fields

Technical Outlook:

  • Huge day for the bulls and for the market in general yesterday. 
  • SPX broke through the 50-day moving, which it hasn’t done since 12/29. 
  • But of more importance is the fact that SPX closed above key resistance at 1947. Now there is a vacuum of resistance between current price of 1951 and the 1990’s. 
  • SPX created its first higher-high in the market since 12/29/15. However, the bears managed to squash it immediately. 
  • The double bottom pattern from the 1810-12 area has officially broken out. 
  • Careful here for a possible gap-and-crap scenario where the bulls get sucked in at the open and the market sells off thereafter. The market loves to destroy traders in that way. Just look at what happened on Wednesday on the gap down. 
  • SPY volume was extremely weak and only about 2/3’s of average readings. 
  • This market is showing all the signs of a rally similar to that of October 2015. Very strong and unrelenting and goes a lot higher than anyone expects. A move to somewhere in between 1990 and 2040 would be such a move. 
  • Oil actually broke the downtrend off of the November highs yesterday, but the key is to find additional follow through to the upside today so that it isn’t simply labeled as a “head-fake”. 
  • VIX continues to deteriorate and is back below 20, dropping -7.8% to 19.11.
  • T2108 (% of stocks trading above their 40-day moving average) continues to accurately show the underlying strength of stocks of late, rising 13.5% yesterday to 54.42. 
  • SPX 30 minute chart managed to nullify the head and shoulders pattern that was trying to form, and instead formed a higher-high to continue on its current upward trend.greener fields

My Trades:

  • Closed UPRO yesterday at $53.65 for a 7.3% profit. 
  • Closed R at 55.38 for a 0.4% loss. 
  • Added three new long positions yesterday. 
  • Currently 30% Long, 70% Cash
  • Will look to add 1-2 new positions to the portfolio if the market can follow through on yesterday’s break above 1947. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 2-26-16

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