The Rising Trend-Line Off Of The February Lows

My Swing Trading Approach

I have identified some key trade setups that I want to take a stab at right out of the gate this morning. Should this bounce hold today, and in the days ahead, the potential for a 100 to 150 point move for SPX looms very, very large and could be one of the best bounce opportunities of the year. 

Indicators

  • Volatility Index (VIX) - Created a new closing high on the month, but not an intraday high. Potential for a double top if the equities rally holds up today. 
  • T2108 (% of stocks trading above their 40-day moving average): Almost reached the single digits yesterday, but closed at 11% which is insanely low. Look for a bounce here. 
  • Moving averages (SPX): First test today, to see whether this rally will stick will be a on a test of the 5-day moving average. 

Sectors to Watch Today

Utilities and Real Estate held strong and is expected in a correction. For the bounce to play out and hold strong, Technology, Discretionary and Industrials will have to participate and lead the way.

My Market Sentiment

Capitulation-like price action into the close yesterday with a 3% decline to take SPX negative on the year. Now the rising trend-line off of the February lows are being tested. Critical area of support here. 

S&P 500 Technical Analysis

swing trading strategy report 315

Current Stock Trading Portfolio Balance

  • 100% Cash

Click here to download my Allocation Spreadsheet. Get all of my trades that I make real-time by jumping in the  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.