Industrials Continued Its Push Higher

My Swing Trading Approach

I am a little cautious of being aggressive here following a four-day rally, and an anemic rally yesterday that showed plenty of signs of the market running out of gas in the very near term. Raising my stops is a priority here.

Indicators

Volatility Index (VIX) – Broke another barrier and the lowest reading since January 12th. Declined 3% to 10.93.

T2108 (% of stocks trading above their 40-day moving average): a 2.5% increase taking the T2108 to 55%. Not a great reading considering the market is just a shade below its all-time highs.

Moving averages (SPX ): Price is trading above all the major moving averages.

Sectors to Watch Today

Industrials continued its push higher, and could be setting up finally, for a run to new all-time highs. Technology looks tired here with yesterday’s exhaustion gap. Energy hitting resistance again off the descending trend-line from the May highs. Financials sporting a solid inverse head and shoulders pattern. Materials still impossible to get a feel for – not breaking down, but not moving higher either – a continual sideways pattern.

My Market Sentiment

While the market rallied higher yesterday, it also, from an intraday standpoint, looked tired and ready for some consolidation or perhaps even a small pullback. Again, any pullback is fine as long as 2801 holds.

S&P 500 Technical Analysis