Today’s Trading Plan: Out of the Coil

Technical Outlook (SPX):

• Nice coil at the highs that saw SPX breakout on Friday and establish new highs. 
• 2124 on SPX represents resistance at the upper channel band. 
• After an initial dip lower SPX 30 minute chart finished higher on every bar – a total of 12 in total and 25 points off the lows. 
• SPX 30 min chart continues to establish higher-highs and higher-lows – very healthy. 
• Very strong volume on Friday for SPX/SPY
• VIX dropped 6.5% down to 14.30. 
• During the rally, it has done a fantastic job of holding on to the 5-day moving average. 
• 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. 
• The previous four trading sessions has seen price pullback intraday – only for the dip-buyers to come back immediately and hold price right at the all-time highs or better. 
• Upper channel resistance is now at 2124.
• Russell breakout out perfectly above the box range it has been in for over a year now. 
• Weekly SPX chart shows a well constructed bullish-flag breakout taking place. 
• Monthly looks equally impressive. 
• 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 one new position on Friday. 
• Did not close out any positions on Friday.
• Will be increasing the stop-losses of a number of positions today. 
• 70% Long / 30% cash. 
• Will look to add another new long position today, but will likely result in taking profits in an existing position. 
• Remain long HON at 102.48, ADBE at 73.66, MA at 86.29, MSFT at 43.03, BA at 149.84, LULU at 66.74.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: