The Pullback Was Long Overdue

My Swing Trading Approach

At this stage of the game, I am weary of how much more the bulls have left in the tank before we see some kind of pullback. More than likely, I will play it safe here, and let the existing positions do the work, while tightening my stops. 

Indicators

  • VIX - Despite the selling yesterday, not much much of a bounce out of VIX - only 4.9%. I would have expected more than 10%. 
  • T2108 (% of stocks trading below their 40-day moving average): one of the biggest drops of late - 7% taking it down to 66%. Stocks are vulnerable here. 
  • Moving averages (SPX): Broke below the 5-day moving average yesterday, with the 10 and 20-day moving average in view. 

Industries to Watch Today

Technology and Heathcare barely managed to stay in the green, and led the market, despite the overall bearishness surrounding the day. Communication Services and Real Estate struggled by far the most, with the latter giving up most of its gains in the past week.

My Market Sentiment

Yesterday's pullback saw some major intraday swings that ultimately resulted in the market closing at the lows of the day. Though the pullback was long overdue. Watch to see if the rising trend-line off of the May lows comes into play in the days ahead. 

S&P 500 Technical Analysis

swing trading strategy report 222

Current Stock Trading Portfolio Balance

  • 5 Long Positions

Click here to download my Allocation Spreadsheet.

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