Sectors Are Rolling Over

My Swing Trading Approach

Currently, I am 100% cash and will stay that way, until there is a definable edge in this market.

Indicators

VIX – Big pop in the VIX yesterday sent the indicator to 23.34. Watch to see whether it breaks the highs from March.

T2108 (% of stocks trading below their 40-day moving average): A massive decline yesterday of 30%, sending the indicator down to 33%. Still no where near the reading from February, when it dipped into single digits .

Moving averages (SPX): 100-day moving average was clearly broken, the next destination appears to be the 200-day MA. Previous test, saw a very hard and aggressive bounce.

Industries to Watch Today

Utilities were the only sector to finish in positive territory. Its chart though is not one that I would consider bullish though. Technology finally broke down yesterday. All other sectors are rolling over.

My Market Sentiment

A double top pattern formed in February and March confirmed and a lower-low confirmed as well. Very bearish chart for the market at this juncture.

S&P 500 Technical Analysis