Bull Flag Pattern Still In Play

My Swing Trading Approach

I added one position yesterday in the leading sector, industrials, but only a small amount of my capital is being put to use here, as long as the market remains uncooperative in the short-term. 

Indicators

  • Volatility Index (VIX) - Dropped 4.8% yesterday, but the inverse head and shoulders pattern remains in place. Current reading is at 14.16.
  • T2108 (% of stocks trading above their 40-day moving average): Gave up most of its gains on the day, but still managed to pop 4.4% to 50% overall. 
  • Moving averages (SPX): The 5-day MA crossed below the 10-day MA, while price held the 20-day MA, it could not hold the intraday break of the 10-day MA into the close.  

Sectors to Watch Today

Telecom exhibited a lot of strength today, but not necessarily enough to get overly optimistic on the sector. Industrials continues to consolidate at the recent highs and looks poised for a solid break higher. Technology continued with the bounce off of the June lows. 

My Market Sentiment

Bull flag pattern still in play, and potential bounce off of the 20-day moving average, though yesterday's price action wasn't inspiring. Market poised to gap lower, the key becomes whether the bulls can fill the gap as the market has done a lot of lately. 

S&P 500 Technical Analysis

swing trading strategy report 283

Current Stock Trading Portfolio Balance

  • 2 Long Positions

Click here to download my Allocation Spreadsheet.

Get all ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.