No Trust In The Market

My Swing Trading Approach

Not trusting the market here, unless it can show me it wants to play nice. I’ll add more positions to the long side, but the market needs to show it wants to bounce.

Indicators

VIX – Sold off a second consecutive day, but the price action in the indices is not supporting the move very well.

T2108 (% of stocks trading below their 40-day moving average): Another big move dropping 6.3% down to 53%. Stocks are not behaving well under the surface, and breadth remains poor.

Moving averages (SPX): Tested and held the 10-day moving average yesterday. That looks to be tested again today.

Industries to Watch Today

Technology showed some willingness to bounce back yesterday, while consumer defensive continues to be the strongest sector of late. Utilities may have finally bottomed here. Industrials is attempting to put in place a bull flag pattern as is Financials and consumer cyclical. Energy acting like it is turning over here.

My Market Sentiment

The last four days has probably been rough for traders and investors, but even so, the market is only 1% off of its all-time highs. I suspect we will see a bounce in the coming days.

S&P 500 Technical Analysis