Today’s Trading Plan: Near Upper Channel

Technical Outlook (SPX):

• SPX drifted higher yesterday, and saw early morning weakness get quickly bought up. 
• Following Friday’s breakout, we have a nice series of higher highs and higher lows on the 30 minute chart of SPX.
• Nasdaq has pushed higher for 10 straight days – a rarity by any measure, with the negative reaction to the HPQ earnings, there is the possibility we see a pullback today. 
• 5 day moving average remains a strong level of rising support going forward. 
• Channel resistance overhead at 2126 on SPX. 
• SPY volume remains relatively weak of late. 
• SPX is continuing with the theme of slight weakness at the market open, followed by selling thereafter, and a bottom in the first hour of trading that results in a rally off the lows. 
• VIX saw significant selling down 6% to 13.69 – the lowest such reading of last December. We’ve seen difficulty with the market to progress much further once the 11-12 range is hit. 
• Oil broke to the downside and out of the recent range. Be careful about any long positions connected to oil. 
• T2108 (% of stocks trading above the 40-day MA) shows that the recent consolidation may see an upside break which would be healthy for the market. 
• A pullback on SPX would not be able to drop below 2065 level without threatening key price support and the integrity of the current uptrend. 
• Russell breakout out perfectly above the box range it has been in for over a year now. 
• 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:

• Closed out ADBE at $77.20 for a 4.8% gain yesterday. 
• Closed out MSFT at $44.12 for a 2.5% gain yesterday. 
• Added two new positions yesterday. 
• Will look to increase the stop-losses of some current positions today. 
• 60% Long / 40% cash. 
• Will look to add another new long position today. 
• Remain long MA at 86.29, BA at 149.84, SWKS at 83.33, DD at 77.19.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: