Technical Outlook:
S&P 500 (SPX) had one of its biggest sell-offs of the year on Friday, catching the large majority of market participants by surprise.
SPX broke its 50-day moving average and closed below it for the first time since 6/29.
The volume on SPDRs S&P 500 (SPY) was more than triple the normal average and the highest since the Brexit sell-off.
Key test of support today at the 2120 level to bwe in play today.
Rising support off of the February lows, connected by the Brexit lows, is also in play today at 2098-2100.
CBOE Market Volatility (VIX) has a major rally on Friday, pushing 40% higher to 17.50 and breaking out of key resistance.
Russell 2000 (RUT) broke down and out of the rising channel on Friday.
Nasdaq (QQQ) broke its short-term trend-line and confirmed the short-term distribution pattern.
Plenty of Fed speak today that will influence the market. Most notably at 8am and 1pm eastern.
Three support levels that I had been watching going into Friday were all broken on SPX: 2168, 2155, and 2147.
My Trades:
Added one new short position on Friday.
Closed out GS on Friday at $168.90 for a 0.3% profit.
Closed out DOW at $53.28 on Friday for a 1.5% loss.
Remain short: TGT at $70.30, MSFT at $57.50, GME at $27.97, T at $40.63.71
Remain long SPXU at $23.01
May add 1-2 new swing-trades to the portfolio today.
Will consider adding new long positions to the portfolio if the market shows signs of putting together a possible bounce.
Currently 50% Short (counting SPXU is a short on SPX) / 50% Cash
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Chart for SPX:
S&P 500 (SPX)
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