Today’s Trading Plan: Getting Weak in the Knees

Technical Outlook:

• SPX rose for the fifth straight day, being saved in the last 5 minutes of trading with a nice pop. 
• The 5-day moving average continues to hold strong since last Tuesday’s mega-rally. 
• SPY rallied straight into resistance yesterday at $200’s but didn’t break higher. Volume was low and back to the levels we saw on Thursday and Friday last week. 
• VIX continues to bounce off of the trend line from the October lows. 
• Some consolidation on the 30 minute chart that is creating a descending triangle pattern.
• The trend-line off of the February lows is still holding strong. A move today below 1989 would break it on SPX
• Watch the 10-day moving average today which should fall somewhere around 1970. This has been a strong rallying point for the bulls since the rally began off of the 2/11 lows. 
• T2108 (% of stocks trading above their 40-day moving average) is trading at 85.87 which is now the highest level it has been trading at since February 2012. 
• SPX crossed back over the 2000 level for the first time since early January. 
• The 200-day moving average for SPX looms large for the market and currently sits at 2022.
• Oil continues to breakout, popping another 4.8% yesterday and rising for the fifth time in the last six trading sessions on above average volume. It was the first legitimate higher-high for the commodity (USO) since May of 2015. 

My Trades:

• Added one new swing position to the portfolio yesterday (short)
• Did not close out any positions yesterday. 
• Currently 10% long / 10% short / 80% Cash
• Remain long GLD at $119.64.
• Will look to add 1-2 new positions and follow the market’s direction 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: