• buy or sell

buy or sell

Technical Outlook:

  • Massive bounce yesterday at around the 50-day moving average, and closing a shade below 2100. 
  • Again the bears let go of another opportunity to jump start a sell-off. 
  • SPY volume dropped off yesterday and was notably below recent averages for the first time in 10 trading sessions. 
  • VIX continues to struggle with the mid-16’s, following another test yesterday that failed and dropped VIX back down into the 14’s. 
  • T2108 (% of stocks trading above their 40-day moving average) rose 7% yesterday to 53%. 
  • SPY gap from Monday’s well-off was filled yesterday. 
  • Possible case can be made that there is an inverse head and shoulders pattern on SPY 30 minute chart though it is not typical of where they are usually found at. 
  • For the bulls: need to get back above Friday’s closing price.
  • For the bears: need to break below the double top confirmation level currently at 2030. 
  • In general Q3 doesn’t ten to be a very good quarter historically for stocks. In recent past that has also been the case. Last August, there was an extreme sell-off. 
  • Market is assuming that rate hikes are pretty much off the table for all of 2016. 

My Trades:

  • Covered FDX yesterday at $151.19 for a 2% profit. 
  • Added one new short position to the portfolio yesterday. 
  • Will look to add 1-2 new trades today. 
  • Best risk/reward currently is currently to the downside. 
  • Currently 30% Short / 70% Cash
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 7-7-16

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