Today’s Trading Plan: Trying to Find Normalcy

Technical Outlook:

• Another solid day of follow through on the dead-cat bounce. 
• Nearing major resistance on SPX. At 2120, you have a significant resistance where many rallies throughout the course of 2015 have come and died at. 
• At 2125 you have the peak of the right shoulder. If this breaks, the head and shoulders pattern becomes nullified. 
• Looking at a likely flat open on SPX – the first time in the past couple of weeks we have seen such a muted open. 
• SPX broke above the 20-day moving average again, and closed just a shade below the 50-day moving average on SPX. 
• Volume fell to just average levels and the fourth straight day of declines in volume. 
• VIX dropped a massive 17.4% yesterday – all the way down to 13.90. 
• For the VIX this is very telling for traders, and shows that the dead-cat bounce we have seen of late, may in fact morph into a new challenge of new all-time highs. 
• Personally, I wouldn’t be surprised to see VIX drop all the way down to the lower 12’s before bouncing higher again. That has been the trend and tendency all year long. 
• Double bottom on 30 minute SPX chart has been confirmed with yesterday’s move above 2085. This could create a target as high as 2025. 
• T2108 (% of stocks trading above the 40-day moving average) had a nice pop yet again yesterday rising 17% up to 38%.  
• The market doesn’t care about the economy nor earnings. That is not what is driving it. The market cares about what the Fed is doing to keep equities propped up. 

My Trades:

• Did not sell any positions yesterday. 
• Added one new long position on Friday.  
• 30% Long / 70% cash. 
• Remain long: UPRO at 66.55, FB at 90.10.
• Will look to add 1-2 new positions today to the portfolio. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: