Today’s Trading Plan: Market Bulls Trying to Hang On

Technical Outlook (SPX):

• Key break yesterday as SPX pushed through 2065. A pivotal price resistance level. 
• Despite the large rally, the VIX was largely unimpressed, only moving 2.4% down to 15.6%. 
• SPX looks to show some profit taking at the open this morning. The key is whether it can hold on to 2065 and prevent another sell-off similar to what we saw on Friday. 
• This market is unbelievably sketchy, and loading up on lots of positions in either direction is ill-advised. The choppiness is a profit killer. 
• Ideally for the bulls, they need to establish some follow through, because the market of late has had a difficult time establishing a move in either direction without an equal counter-move. 
• SPX confirmed a double bottom on the 30 minute chart yesterday. 
• Plenty of uncertainty in the market short-term. Euro and oil are major players in the market’s direction currently.
• Strong short-term support for SPX  at the 2040 price level. Break that area, and the market should drop hard into the 2010’s with little difficulty.  
• Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
• 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:

• Added two new positions yesterday. 
• Will look to add new long positions today if the market can follow through on yesterday’s gains. 
• 20% long. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: