Today’s Trading Plan: Sell Off Attempt Take Two

Technical Outlook:

• SPX sold off ever so slightly yesterday despite breadth of advancing stocks vs. declining stocks being absolutely horrible. 
• Today there is additional weakness facing the market at the open with Bloomberg Terminal going down overnight, China opening their market to short sellers and continued concerns about Greece’s eventual default on their debt. 
• Despite SPX being up 7 out of last 10 trading sessions the progress the indices have made has been far less than I’d had expected. Nonetheless, heading into today, the charts are setting up very bullish. 
• This morning it will be imperative for the bulls to buy this dip and keep price from dipping below 2083 or Tuesday’s lows. 
• 5-day moving average has also been a key, rising support level for SPX of late. This morning it will break below it – watch for whether it is able to reclaim the MA by the closing bell. 
• VIX continues to be astoundingly weak as it now drops to 12.60 and key support. 
• SPY volume, not surprising, was very weak yesterday. 
• A significant sell-off in excess of 15-20 points on SPX would be crippling for the bulls and create new conversations of renewed selling. 
• SPX needs to hold 2083 on 30 minute chart to avoid a lower-low. 
• 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
• Did not add any new positions yesterday. 
• 60% long / 40% cash. 
• I’ll consider adding 1-2 new long positions today dependent on the strength of today’s price action. 
• Remain long: UPRO at 132.12, AAPL at 126.81, ETN at 68.88, CBI at 50.63.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: