My Swing Trading Strategy
No new positions on Friday, as I am hesitant about any more exposure until the market breaks out of the current five day consolidation and low volume pattern.
Indicators
- Volatility Index (VIX) – $VIX dropped 3.4% on Friday and sits just above its 50-day moving average, which is has been unable to break since May 3rd. Also watch to see if it can break those lows from May 22nd.
- T2108 (% of stocks trading above their 40-day moving average): A 5.1% decline last session, but still remains in a healthy uptrend. I’d like to see the reading at a much higher level, preferably above 50% at this stage of the rally.
- Moving averages (SPX): SPX currently trading above all of its major moving averages, but sitting on the 5-day moving average and just above the 50-day MA.
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Sectors to Watch Today
Check out my full and complete sector analysis by clicking here.
My Market Sentiment
Five days of consolidation has created a bull flag pattern, while managing to not give up much of the gains over all so far this month. This week will be incredibly important for the market in terms of gauging future market direction.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 40% Long
