Today’s Trading Plan: Time for the Next Act to Begin

Technical Outlook:

• SPX down yesterday in sympathy with the negative earnings reactions in AAPL and MSFT. However, the indices did a respectful job of recovering some of the day’s losses. 
• Sets up today for the dip buyers and whether they will by this rather light pullback the past three trading sessions after previously failing to establish new all-time highs. 
• At this moment, I don’t see the headline risk driving the market lower. For now, Greece is being ignored by the market, while the market is in the thick of earnings season. 
• In play today is the 10-day and 50-day moving averages. 
• VIX, surprisingly, actually fell yesterday 0.8% down to 12.12. 
• SPX 30 minute chart looks a bit distributive and could see another move to 2103 before finding any support.
• My biggest ongoing concern with the market right now is the inability to establish new, clear-cut all-time highs that leads to an expansion of price as well. Instead SPX gets bogged down in the 2120-2130’s range and reverses course each time. 
• T2108 (% of stocks trading below the 40-day moving average) showed solid strength yesterday rising 4.3% to 38%. 

My Trades:

• Added one new position yesterday. 
• Closed out TRIP at $92.69 for a 1.5% gain. 
• Stopped out of TWTR at 35.53 for a 2.8% loss. 
• 30% Long / 70% cash. 
• Remain long: COST at 144.57, JAH at 55.74.
• If the market shows a willingness to start moving higher again today, I’ll add 1-2 new positions. Hedging my existing long positions is an option as well if the market doesn’t show an ability to rally today. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: