Today’s Trading Plan: Bouncing at the Fifites

Technical Outlook:

• SPX experienced a hard reversal on Friday where price found buyers at and around the 50-day moving average and ultimately ended up resulting in an 18 point reversal off the lows of the day. 
• Despite all the days of selling that was to be had last week, SPX finished just eight points lower on the week. 
• Similar bounces were seen on Friday, off of the 50-day moving average, on the Russell 2000 and Dow Jones Industrial Average. 
• Tech (Nasdaq) continues to perform the weakest among all the indices, but QQQ saw a strong bullish engulfing candle pattern on Friday. 
• Uptick in volume on Friday from what was seen the day prior on SPY, but still slightly below recent averages. 
• Despite the rally on Friday, SPX still hasn’t made a higher-high on the 30 minute chart. Needs a close above 2060 level. 
• Very concerning was the hard sell-off at key resistance on Friday that resulted in a 7.5% decline down to 14.72. Rejection in the 16.40’s continues to be a huge problem for a sixth straight day. 
• SPX at this point looks ready to bounce following the mild weakness of late. 
• Historically the May through October time frame is much weaker than the rest of the year.

My Trades:

• Covered ORCL on Friday at $39.21 for a 1.3% profit. 
• Sold SDS on Friday at $18.90 for a 1.1% profit. 
• Added two new long positions on Friday. 
• Currently 30% Long / 20% Short / 50% Cash
• Remain Long: JNJ at $112.65. 
• Remain Short two positions. 
• Will look to add 1-2 new short positions today if the market seeks to push lower. Will be aware for the potential of a bounce as well. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: