S&P 500 Continues To Ride The 5-Day Moving Average

My Swing Trading Approach

Don’t take profits for granted. It’s convenient to ignore risk management on the trades, but you have to keep raising those stops. I will also look to add 1-2 new long positions today.

Indicators

VIX – 7% pop to 10.33. Likely that is just another selling opportunity for the bears to crush.

T2108 (% of stocks trading below their 40-day moving average): 3% decline down to 71%. Two-day sell-off is the biggest since 9/5.

Moving averages (SPX): Continues to ride the 5-day moving average. Until that breaks, there is very little reason to turn negative on this market.

Industries to Watch Today

Consumer Defensive trying to roll over, Health Care led the way to the downside yesterday. Real Estate showing signs of breaking out. Energy in a two-week consolidation pattern, while Technology continues to rock.

My Market Sentiment

Two days of selling hasn’t generated any reason to be fearful of current price action. Everything is contained inside of Thursday’s candle body. At this point, expect another leg up in this market.

S&P 500 Technical Analysis