My Swing Trading Approach
I added two new trades on Friday, and will look to add another 1-2 more today should the market show signs it wants to add to the gains. Never trust this market. Volatility swings are wild, and you should expect a change of direction at any moment.
Indicators
- Volatility Index (VIX) – Down 6 of the last 7 trading sessions and now looking a a potential move below 20. Currently sitting at 21.38.
- T2108 (% of stocks trading above their 40-day moving average): Finally a huge move for this indicator – I was wondering when we would see it. A rare triple-digit move of 108% to push it back to 20% overall. Still plenty of room to run, if this market wants it.
- Moving averages (SPX): Stopped just short of breaking the 20-day moving average, which will be in play today. Crossed back above the 5 and 10-day moving averages.
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Sectors to Watch Today
Everything was solid on Friday, every sector showed a good deal of strength, with Technology and Materials leading the way with moves of over 4%. Energy also rebounded which was hugely important to this market’s health going forward. 
My Market Sentiment
Re-testing critical resistance overhead. Closed right on it following Friday’s huge rally. Needs to break above it today. Oversold conditions are starting to lift for this market and that’s a good thing as well, because it shows, buyers are finally starting to get interested in making a move in this market.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 20% long.
