• traders make a comeback on the stock market

Technical Outlook:

  • Yesterday marked a hard sell-off in the early going as the bulls were dumping their stocks as fast as they could, but then, after the first 30 minutes of trading, a base was established, and the market bounced throughout the remainder of the day. traders make a comeback on the stock market
  • SPX took a 21 point sell-off early on and turned it into a 6 point rally by the end of day. 
  • That was the hard bounce I was looking for. Once established, if they are truly a dead cat bounce, then they likely won’t last beyond 2-3 days. 
  • SPX managed to climb back above the 50-day moving average, but fell just short of breaking the 5-day moving average. 
  • I expect 2085 to offer some resistance today as it was also the place where Wednesday’s rally reversed at. There is some heavy short-term resistance at that level. 
  • The objective for the bulls today should be to quickly push price back over 2100 again. 
  • For the bears the goal should be to reverse as much of the from yesterday as possible and keep price from breaking above 2085. 
  • SPY volume smashed the volume readings of anything we have seen this week and the highest seen since March 10th. 
  • VIX should be very concerning for traders as it put together a major reversal candle after establishing new rally highs yesterday. You could very easily see VIX rapidly decline from here. 
  • VIX ultimatley dropped 3.8% down to 19.37 yesterday. 
  • I believe, at this point, profits have to be taken aggressively, and avoid the tendency to let the profits run – the market is in a very choppy range that has mired stock price for the past two years. Unless it breaks out of it and onto new all-time highs, then taking profits aggressively is absolutely important. 

My Trades:

  • Added one new swing trade long yesterday. 
  • Did not close out any positions yesterday. 
  • Remain long UPRO from 63.29
  • Will look to add another long position if the market continues to climb higher, or short the market if today ends the dead cat bounce. 
  • Currently 10% Long / 90% Cash
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 6-17-16

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