My Swing Trading Approach

I'm continuing with my cautious approach to the market right now. In the pre-market, the futures are slipping a little bit, so I'll wait to see whether the market can bottom and rally higher. I don't expect to add more than 1-2 new positions today, while maintaining profits in my current positions.  

Indicators

• VIX - Wiped out most of Tuesday's gains - a good sign the bulls are wanting to drive this market higher. Currently trading at 13.42. 
• T2108 (% of stocks trading below their 40-day moving average): Healthy bounce yesterday, but needs to crack through major resistance overhead at 66%. 
• Moving averages (SPX): Sitting on the 5-day moving average, while still holding the other major moving averages. 

Industries to Watch Today

Materials was the rare leader yesterday. While Utilities and Real Estate were the only two sectors to finish in the red - both of which has daily charts that are falling apart. Meanwhile Energy remains the strongest sector, with numerous other sectors, including Materials exhibiting very bullish upward trends. 

My Market Sentiment

While the bounce was on below average volume, it ultimately allows SPX to hold on to key support and a good sign that the bulls want to hold on to the current rally still. 

S&P 500 Technical Analysis

(Click on image to enlarge)

Current Stock Trading Portfolio Balance

• 3 Long Positions