My Swing Trading Approach

The 10-year rate is increasing, which is cause for concern. Also, a slew of earnings reports this week, to keep a close eye on. Lighter in the portfolio, is better, until there is some trading clarity. 

Indicators

• VIX - Small increases in VIX over the last three days - nothing shown that would render support for an increasingly emotional market. I can see the VIX quickly getting sold off again. 
• T2108 (% of stocks trading below their 40-day moving average): A 7.5% decline yesterday, still keeps the T2108 above 55%, which constitutes a healthy market at this juncture. 
• Moving averages (SPX): Broke the 5, 10 and 50-day moving averages. Very possible that there is a retest of the 20-dayy moving average, even though it has done much better acting as resistance than as support. 

Industries to Watch Today

Staples continues to sell off hard and should be avoided at all costs. Technology, yet again, sold off for a third straight day. Unlike staples, tech hasn't been compromised by a breakdown. Financials has held up well over the last two days, and the recent bearishness is quickly disappearing. 

My Market Sentiment

Two straight days of solid selling has brought price on SPX back to the rising trend-line that started when the market bottomed on April 2nd. The market must bounce today, if it has any plans of holding that trend-line. Also, note that the breakout of consolidation last week, is being retested again today. 

S&P 500 Technical Analysis

(Click on image to enlarge)

Current Stock Trading Portfolio Balance

• 2 Long Positions