The Bulls Are Struggling To Rally The Market

My Swing Trading Approach

I remain cautious here, as the bulls are struggling to rally the market substantially higher. Plenty of choppiness in the market. I don’t see myself adding any more than 1-2 new positions to the portfolio if conditions permit.

Indicators

VIX – After a 2.8% decline yesterday, VIX is retesting the trend-line off of the March lows and is on the verge of a breakdown.

T2108 (% of stocks trading below their 40-day moving average): A solid recovery off of the lows yesterday, keeps the bullishness of the T2108 intact, as it rallied 19% off of its lows of the day .

Moving averages (SPX): Rallied right back up to the 5-day moving average, but did not recapture it. The 5, 10 and 20-day MA’s are in view for the market.

Industries to Watch Today

Technology was by far the strongest sector, while staples and energy led the way to the downside. The latter of which managed to remain inside of a coiling pattern. Apple (AAPL) earnings last night, should go a long ways in helping technology once again today.

My Market Sentiment

The market showed signs of wanting to break down yesterday before eventually bouncing hard and finishing the day in the green. Also, the rising trend-line off of the April lows, is proving a great deal of support in the short-term.

S&P 500 Technical Analysis