Today’s Trading Plan: Rest and Continuation

Technical Outlook:

• SPX consolidated yesterday, which in the grand scheme of things wasn’t at all unhealthy for the market. 
• All SPX needed to insure was that it held the 2120 breakout level and it did. 
• SPX has the 5-day moving average trailing the price action for the first time in a very long time. Concerns for the index would start mounting on any move below the MA. 
• Volume on SPY was lighter then the previous days of trading, but that should be expected as we get closer to the Memorial Day holiday. 
• VIX rose for a second straight day to 12.85 and continues to hug the support level off of last July’s lows. 
• SPX shows a nice series of higher-highs and higher-lows on SPX 30 minute chart. 
• Russell 2000 index still remains well off of the all-time highs and still not what I would call a bullish chart by any means. 
• Weekly chart of SPX shows a market in the early stages of a new leg higher. However, there is also a maturing bearish wedge that could be threatened if SPX manages to rally into the 2160’s-70’s. 
• 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 long position yesterday. 
• Did not close out any positions yesterday.  
• 40% long / 60% cash. 
• Remain long: C at 54.58, AAPL at 128.45, UNM at 34.97.
• I’ll consider adding 1-2 new long positions to the portfolio today as long as SPX stays above 2120. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: