Today’s Trading Plan: Weakness In High Gear

Technical Outlook:

• S&P 500 (SPX) had one of its biggest sell-offs of the year on Friday, catching the large majority of market participants by surprise. 
• SPX broke its 50-day moving average and closed below it for the first time since 6/29. 
• The volume on SPDRs S&P 500 (SPY) was more than triple the normal average and the highest since the Brexit sell-off. 
• Key test of support today at the 2120 level to bwe in play today. 
• Rising support off of the February lows, connected by the Brexit lows, is also in play today at 2098-2100.
• CBOE Market Volatility (VIX) has a major rally on Friday, pushing 40% higher to 17.50 and breaking out of key resistance. 
• Russell 2000 (RUT) broke down and out of the rising channel on Friday. 
• Nasdaq (QQQ) broke its short-term trend-line and confirmed the short-term distribution pattern. 
  
• Plenty of Fed speak today that will influence the market. Most notably at 8am and 1pm eastern. 
• Three support levels that I had been watching going into Friday were all broken on SPX: 2168, 2155, and 2147. 

My Trades:

• Added one new short position on Friday. 
• Closed out GS on Friday at $168.90 for a 0.3% profit. 
• Closed out DOW at $53.28 on Friday for a 1.5% loss. 
• Remain short: TGT at $70.30, MSFT at $57.50, GME at $27.97, T at $40.63.71
• Remain long SPXU at $23.01
• 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 50% Short (counting SPXU is a short on SPX) / 50% 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)