Today’s Trading Plan: Greece Lightning

Technical Outlook:

• Friday’s sell-off helped shape the right shoulder of the head and shoulders pattern that has formed over the last two months. 
• Still no deal in Greece as they continue to refuse any deal that would increase VAT taxes or cuts to pensions. Another “last attempt” meeting will occur tomorrow after meetings over the weekend failed. 
• SPY volume was very strong on Friday. 
• A break below 2072 is extremely important for the bulls to avoid allowing price to break below. If that happens, a lower-high and lower-low would be in place. 
• VIX rose 7.2% to 13.78. Watch for resistance to kick in at 15.70’s. 
• Conditions on T2108 continue to deteriorate with only 39% of stocks trading above the 40-day moving average. 
• SPX still above the 5-day moving average, but managed to break below the 10-day and more importantly below the 50-day moving average. 
• 30 minute chart of SPX shows strong potential for a move to 2071-2 in the near-term. 
• SPX downtrend off of the May highs held up perfectly. This can be better seen on the 30 minute chart of SPX. 
• 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:

• Did not add any new short position on Friday. 
• Did not close out any positions on Friday. 
• 20% short / 80% cash. 
• Remain short XYL at 36.16.
• Remain long SDS at 20.21
• I’ll consider adding 1-2 new short position to the portfolio today. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: