Today’s Trading Plan: Still Holding Its Own

Technical Outlook (SPX):

• SPX didn’t see the follow through on Tuesday’s breakout. However, it did manage to hold key support without giving up hardly any ground. 
• Also held the 5-day moving average nicely bouncing off of it at the day’s lows. 
• The technicals are setting up very nicely for traders to the long side. There is a good chance in the coming weeks, SPX makes a run again towards its all-time highs. 
• Careful with the market today though, with the gap up we are likely to see, there is nonetheless a wave of bearish economic reports that are weighing some on those gains. 
• VIX dropped another 1.6% yesterday to finish at 16.96
• SPX 30-minute chart still looks solid. However, it is at a crossroad here where it can either make a new higher-high or confirm a double top. The market’s opening print could determine that. 
• Volume has been notably weak all week long. 
• Tuesday was a key day – that 2064 had provided impressive resistance over the course of 2015 and the bulls finally managed to close over it. 
• Weekly chart of SPX showing a breakout of recent consolidation. 
• Monthly chart of SPX showing a potential bull flag breakout. 
• Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
• 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 of my positions yesterday.
• Did not add any new positions yesterday.
• Will look to add 1-2 new positions on market strength today. 
• 30% Long / 70% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: