Today’s Trading Plan: Getting High on the Stock Market

Technical Outlook:

• After a five minute, seven point dip yesterday, the market ended up rallying 21 points off of the lows of the day. 
• The dip buyers remain in full control of this market. However, key resistance looms overhead and could be, with all the diverging signals, a selling point for the bears to be reintroduced to this market. 
• Futures are up, and suggest a respectable gap higher this morning. However, time and time again, we have seen the market really struggle with gaps at the open, and rarely hold on to their gains or losses (like yesterday). Instead they have been fading opportunities for traders to take advantage of. 
• At this point, if SPX breaks through and closes above the downtrend from the July 2015 highs, there is still some resistance, but little reason to suggest why the market wouldn’t be able to break through it and make new all-time highs. 
• Considering that in February the S&P 500 was down over 12% on the year, and two months later is looking at possibly making a run at new all-time highs is quite unfathomable and not something that should ever be deemed common place for the market. 
• With that said, such quirkiness is possible when you have multiple central banks working together to consistently goose the market higher. 
• I came in to today with a small short position, but did so because I want to trade and attempt to fade the test of major resistance on SPX. If it fails, I simply close out that trade and move on. 
• Slight increase in SPY volume yesterday and volume is higher for a second straight day….but of course it is still below average. 
• VIX has pushed lower for a fifth consecutive day and for the 30th time in the last 45 trading days. Really an amazing stat. 
• USO looking to rebound and push back above the $10.75 where it formed a double top of late. 
• The market has been strong on the weekly chart rallying 7 out of the last 9 weeks and now looking to make it 8 out of the last 10.  
• April has been bullish in nine of the last ten years. 
• 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. 

My Trades:

• Added one new short position as SPX tests key resistance. 
• Did not close out any swing-trades yesterday. 
• Currently 10% Long / 10% Short / 80% Cash
• Remain long TLT at $129.52
• Will look to add short additional short exposure if the market fails to hold or break through resistance. Will look to add some long positions should the exact opposite occur. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: