Today’s Trading Plan: Something to Build On

Technical Outlook:

• SPX broke and closed above the triangle I outlined in the chart below. Ideally, I would like to see price move beyond last week’s highs of 2105. 
• Walmart reported discouraging earnings this morning which has weighed on futures some as a result. 
• A break above 2115 today would greatly increase the odds of testing the all-time highs yet again. 
• Also, with yesterday’s price action, the converged 20 and 50-day moving averages were re-gained by the bulls. 
• For the bears, the object of their affection should be the 200-day moving average and getting price below it at the close. Of late, that has represented a very stubborn level of support. 
• Volume still remains well below average and weak in general. 
• VIX finished higher yesterday by closing at 13.02. Remember the hard support at around the 11.70’s where nearly every market reversal has taken place at this year. 
• T2108 (% of stocks trading above the 40-day moving average) had a big move of its own yesterday by breaking out and above heavy resistance at 39% and closing at 41% – a 9.4% gain for the day. 
• Inverse head and shoulders pattern on SPX 30 minute chart has been confirmed. Not to be confused with the one on the daily chart. 
• A view is emerging that a rate hike in September might be off the table. 

My Trades:

• Did not add any positions yesterday.
• Did not close out any positions yesterday. 
• 50% Long / 50% cash. 
• Remain long: SBUX at 56.37, UPRO at 67.17, AAPL at 114.64, NFLX at 123.45, FB at 94.66.
• I have enough capital at work at this point so I am only likely to add new positions today if I am to close another position currently in the portfolio. I could increase portfolio exposure if the market makes large strides and and through key resistance. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: