Today’s Trading Plan: Range Bound Again

Technical Outlook:

• Yesterday was a pivotal day for SPX, despite some profit taking at the close, SPX managed to break, with authority, the declining trend-line off of the day’s highs. 
• Also, SPX managed to negate the right shoulder on the head and shoulders pattern that had been forming. For now we have to see if the right shoulder peaks at a higher price point or not. New all time highs would permanently table the discussion. 
• Very strong volume yesterday, and the strongest we have seen since April for SPY. 
• SPX managed to close in that stubborn resistance range between 2120-2122. 
• VIX right back down again at the support levels going back to the July 2014 lows. This has been a constant rally point for the VIX and sell-off point for SPX throughout this time. 
• Big day yesterday for T2108 (% of stocks trading above their 40-day moving average) as it moved about 20% and closed just below the 50% mark. 
• Double bottom formation on SPX was confirmed yesterday. 
• 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 close out any positions yesterday. 
• Added one new long position yesterday. 
• 10% long / 10% short / 80% cash. 
• Remain short XYL at 36.16.
• I’ll consider adding 1-2 new short position to the portfolio today, if price fails to break through the declining resistance off of the May highs. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: