Today’s Trading Plan: Still Fighting Through Some Resistance

Technical Outlook:

• SPY saw a strong gap up yesterday but remained essentially flat the rest of the day, with minimal upward momentum. 
• Volume on SPY was atrocious, well below average, and nearly as weak as the levels seen last Thursday. 
• SPX broke the closing highs from 1/29 but finished just a couple of points underneath the intraday highs of 1947, which would have established a new higher-high. 
• The 50-day moving average also looms large on SPX at 1951, and will likely come in at around 1948 at the open today. 
• If SPX can break through the 1947 area, there seems to be a good chance of seeing it rally back up to resistance at 1990-ish. 
• The 30 minute chart of SPX shows that 1947 is a strong level of resistance and now has price bull-flagging just below the resistance level. 
• VIX sold off for a sixth consecutive day and is now below the pivotal 20 level at 19.38. The meltdown continues in a similar fashion to what was seen in October 2015. 
• T2108 (% of stocks trading above their 40-day moving average) keeps chugging higher, rising another 20% to 47.85. The highest reading since 12/1. 
• USO closed right on the downtrend off of the November highs. It’ll be critical for USO to push through this area and establish a clear break in the downtrend today. 
• Insane price movements every day being created by computer generated trading (HFT’s) in a highly volatile market marked with enormous headline risk. 

My Trades:

• Closed KMT out yesterday at $19.81 for a 2.9% profit.
• Added two new long positions to the portfolio yesterday. 
  
• Currently Long FB at $104.46.
• Currently 30% Long, 70% Cash
• Will look to add 1-2 new positions to the portfolio as long as the current uptrend is not compromised. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: