Swing Trading Strategy Report – Thursday, August 31

Price action is becoming more reliable for the bulls here, however, shock events still loom large on SPX with North Korea. I will look to aggressively increase my stops on my profitable positions.

Indicators

VIX – Same story every day – start higher, finish lower. Traded initially in the 14’s, and finished at 11.70.

T2108 (% of stocks trading below their 40-day moving average) – Some improvement – but at 39% stocks as a whole have really taken a beating this month.

Moving averages (SPX): The 50-day was the big issue for traders when it constantly rejected price. Yesterday, it broke through it, and through the 20-day MA as well.

Industries to Watch Today

Tech is my main focus – I also like some of the off-beaten path, financial companies like Square (SQ) and PayPal (PYPL). Software companies looks strong as well. Defense companies languished yesterday, will need to improve upon that today. Media stocks are still solid.

My Market Sentiment

Solid follow through and an end to a month long downward channel. Now the question of whether all-time highs can be reached becomes the next obstacle for the market.

S&P 500 Technical Analysis