Industrials Continued Its Push Higher

My Swing Trading Approach

I am a little cautious of being aggressive here following a four-day rally, and an anemic rally yesterday that showed plenty of signs of the market running out of gas in the very near term. Raising my stops is a priority here.  

Indicators

  • Volatility Index (VIX) - Broke another barrier and the lowest reading since January 12th. Declined 3% to 10.93. 
  • T2108 (% of stocks trading above their 40-day moving average): a 2.5% increase taking the T2108  to 55%. Not a great reading considering the market is just a shade below its all-time highs. 
  • Moving averages (SPX ): Price is trading above all the major moving averages. 

Sectors to Watch Today

Industrials continued its push higher, and could be setting up finally, for a run to new all-time highs. Technology looks tired here with yesterday's exhaustion gap. Energy hitting resistance again off the descending trend-line from the May highs. Financials sporting a solid inverse head and shoulders pattern. Materials still impossible to get a feel for - not breaking down, but not moving higher either - a continual sideways pattern. 

My Market Sentiment

While the market rallied higher yesterday, it also, from an intraday standpoint, looked tired and ready for some consolidation or perhaps even a small pullback. Again, any pullback is fine as long as 2801 holds. 

S&P 500 Technical Analysis

swing trading strategy report 260

Current Stock Trading Portfolio Balance

  • 3 Long Positions

Click here to download my Allocation Spreadsheet.

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