Bulls Need To Put Together A Substantial Rally Today

My Swing Trading Approach

I’m not looking to add new positions to the portfolio unless this market can show itself capable of sustaining a bounce.

Indicators

VIX – Dropped 7.5% but remains elevated at 27. Paired much of its losses with an end of day rally. I expect that this will come down further in the days ahead.

T2108 (% of stocks trading below their 40-day moving average): Actually managed a 3% rally yesterday to close at 24. It still remains oversold.

Moving averages (SPX): Rejected at the 5 and 50-day moving averages yesterday. Also expect a 5/50-day downside crossover.

Industries to Watch Today

All the sectors were down yesterday, except for Industrials which were flat on the day. Utilities have now dropped more than 10% from its December highs.

My Market Sentiment

Struggled with overhead resistance yesterday with a broken trend-line as well as two moving averages. Bulls need to put together a substantial rally today to put off the fears of Tuesday being just a dead cat bounce.

S&P 500 Technical Analysis