Today’s Trading Plan: Tsipras Wilts

Technical Outlook:

• SPX looking at a significant bounce higher this morning as futures are rallying on Tsipras’ willing to concede on most disputed points. Germany, ECB showing some resistance early on but that is not affecting futures. 
• Similar rally in the pre-market yesterday but not on the same kind of news, and eventually saw most of the gains of the day wiped out. 
• The headline risk is extremely volatile at the moment, and conditions are rapidly changing at the whims and discretion of politicians seeking to hold on to power. 
• Like Monday, SPX nearly had a test of the 200-day moving average. On SPY there was a test of the the 200-day MA for the second straight day and it held as well. 
• Volume remained strong yesterday on the non-bounce. 
• Two resistance levels the bulls will want to break and hold into the close. The first is 2072, which is the neckline of the head and shoulders pattern on SPX, and the second is the rising uptrend off of the March lows at 2086.
• SPX closed outside of the lower bollinger band for a second straight day. That is unlikely to continue into today .
• Gap fills are a consistent threat to the market’s direction at the opening bell. 
• SPX does show a possible base forming on the 30 min chart. 
• VIX remained elevated, only dropping 3.3% down to 18.23. 
• Watch 2039 for a break below the March lows to fuel the bearishness in the market. 
• 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:

• Covered my short position in CA yesterday at 29.34 for a 3.5% gain. 
• Added one short position yesterday. 
• 30% short / 70% cash. 
• Remain short MAR at 76.40, MMM at 154.30.
• 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: