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

Current Stock Trading Portfolio Balance

• 100% Cash