Today’s Trading Plan: Within Arm’s Reach of 2200

Technical Outlook:

• Strong start yesterday on S&P 500 (SPX) but simply could not hold on as the afternoon unfolded as it gave up some of its gains heading into the close. 
• No ramp into the close yesterday which has become a staple for bullish traders. 
• The market is alternating again in an up/down/up/down fashion. A close lower today would market day #8. Last month we made it to 11 straight days. 
• SPX has not seen a +/- 1% move in either direction since July 8, 2016. Since then the market has moved higher but in very small increments and tight daily ranges. 
• Futures are a bit weak this morning. Watch the 20-day moving average if the market sees any substantial selling. 
• Additional support levels to watch include 2071 and 2055, a break of either would not be healthy for this market. 
• CBOE Volatility Index (VIX) continues to show very little price movement in recent days. It is still trading below 12. 
• Volume on SPDRs S&P 500 (SPY) was incredibly weak yesterday and dropped for a second straight day, which also helps explain the afternoon doldrums during trading yesterday.  
• Nice setup of higher highs and higher lows on SPX 30 minute chart of late. 
• Oil continues to trade higher and looks to extend its gains today. Don’t try to short this rally. Oil continues to trade with an all or nothing mentality. 
• Dow Jones Industrial Average (DJIA) broke through resistance yesterday and needs follow through to day to put to rest any talk about a possible double top pattern. 
• The bulk of the earnings season is behind us. No significant disasters from the big names that reported that negatively impacted the market as a whole. 
• Overall, August is the worst performing month for the Dow and S&P 500. 
• At this point, and with the election ahead, I’d expect the market to keep rallying higher. I don’t expect there to be a rate hike between now and the election. To do so would impact the market and thereby the election. I don’t think the Fed wants that, particularly since Trump has indicated that he would replace Yellen. 

My Trades:

• Sold IP yesterday at $46.39 from $45.51 for a 2.0% profit. 
• May add 1-2 new swing-trades to the portfolio today. 
• Will consider hedging the portfolio as well with a short position. 
• Currently 50% Long / 50% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: