My Swing Trading Approach

You can see where the indices are starting to struggle a bit to keep the momentum going over the last two trading sessions, as a result, taking a more conservative approach until the market can regroup and push higher is necessary here, and if the market continues to follow through on the pre-market weakness, then exposure will be light and keep me flexible for anything that may come my way. 

Indicators

• Volatility Index (VIX) – Downtrend off of the 2/9 highs still remains a monster for this index to contend with. Dropped 5% right after a successful test and hold of the downtrend. Likely to test it once again today. 
• T2108 (% of stocks trading above their 40-day moving average): Currently sitting at 57% that dropped an additional 1% on Friday. Still difficult to get across the board support from stocks. 
• Moving averages (SPX): Broke the 5-day moving average on Friday, and could see a test of the 10-day MA today. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Discretionary is bull flagging, and I am watching for a break higher here. Real Estate coiling at the highs. Industrials showing similar behavior to Discretionary as well. Healthcare is very much overstretched and would look to tighten those stops on related stocks. Financials not holding its gains from last Monday at all and looks weaker than most sectors. 

My Market Sentiment

SPX broke out of the rising channel. Hard to do, and even more so to maintain. More than anything, it signifies that price won’t be contained by boundaries of the upper and lower channel going forward. Market certainly overbought here, so a degree of caution is warranted with how aggressive you should be with new positions. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 2 Long Positions

Recent Stock Trades – See My Past Performance Here.