Today’s Trading Plan: Volatility Increasing

Technical Outlook:

• S&P 500 (SPX) reversed Tuesday’s rally and closing at the same price level SPX closed Friday at. 
• The volume on SPDRs S&P 500 (SPY) increased yesterday, when compared to the day prior, and more than double the daily average. 
• The daily bands on the market continue to expand after exhibiting historical tightness, and price has traded outside of them on SPX for the last two days.
• Nasdaq (QQQ) managed to hold the 50-day moving average and didn’t show near the weakness as the rest of the market, due to preorders of the iPhone 7 being up 375% so far – creating a huge rally for Apple (AAPL).  
• CBOE Market Volatility Index (VIX) rallied almost 18% yesterday and finished the day above Friday’s close at 17.85. Down trend off of the February highs suggests it could rally to 24 before experiencing any resistance. 
• Some strength heading into the open this morning. If the SPX strength fades, as it very well could, there is an immediate test of the rising trend-line at around 2102 area. 
• 2120 represents key support for this market as it has tested and held on to it the last two trading sessions. It also marks a long-term pivot level of support/resistance.
• Russell (RUT) showing increased weakness, with a break of the 50-day moving average and a close below Friday’s lows. 
• SPX 30 minute chart shows the potential for a double bottom to come into play. 
• Crude (/CL) continues to reverse the recent gains. A break of the 9/1 lows will likely take it back to the critical lows established in early August. 

My Trades:

• Added three additional short positions yesterday.
• Sold NFLX yesterday at $97.29 for a 1.2% loss. 
• Remain short: TGT at $70.30, T at $40.63.
• May add 1-2 new swing-trades to the portfolio today. 
• Will consider adding new long positions to the portfolio if the market shows signs of putting together a possible bounce. 
• Currently 10% Long / 50% Short / 40% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

S&P 500 (SPX)