Technology In The Lead

Indicators

  • Volatility Index (VIX) - Despite a crazy trading session, VIX only closed 2.2% higher to 24.70. Some bullish divergence here, as the indicator is not acting wildly as you'd expect, but nonetheless, price pays, and price has yet to confirm on the indices. 
  • T2108 (% of stocks trading above their 40-day moving average): Another bullish divergence yesterday with T2108 actually finishing 22% higher - huge divergence - to bring the indicator back into double digits at 12%. 
  • Moving averages (SPX): Still cannot hold a break of the 5-day moving average whatsoever.

Sectors to Watch Today

Technology started the day in the lead, but quickly gave up all of its gains on the day to be the second worst performer, behind Energy. Fifth straight weakness for the sector. Industrials also feeling the weight of weakness in Boeing (BA). Financials show some relative strength yesterday, and may be attempting a bottom pattern here.

My Market Sentiment

Yesterday saw a sell-off from highs to lows of 103 points on SPX. That is truly incredible, and led in large part by the market's most dependable leaders of the past year - namely AMZN and BA. These two stocks, while weak again this morning, will have to kick it in high gear, in order to leave the markets once again. 

S&P 500 Technical Analysis

swing trading strategy report 10 30 18

Current Stock Trading Portfolio Balance

  • 2 Long Positions.

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