100% Cash Today

My Swing Trading Approach

Still 100% cash today. If I do trade today, whether long or short, it will be small increments.

Indicators

VIX – VIX? rally yesterday of 13% pushed the index back above 20. A potential rally back up to 30 appears very possible here.

T2108 (% of stocks trading below their 40-day moving average): Minimal decline yesterday of 5.5%. Traded down to 24%. Needs to see a much lower reading to see a bottom formed in equities.

Moving averages (SPX): Broke back below the 20-day moving average, and appears ready to retest the 200-day moving average again.

Industries to Watch Today

Only Real Estate and Utilities managed to avoid losses yesterday. Technology led the way to the downside. Energy appears ready to test the February closing lows. Defensive looks ready to break below the February lows

My Market Sentiment

I wouldn’t be surprised if the market found a bottom at some point today, and then engages in a relief bounce, following three straight days of selling. Yesterday’s break of the February 22nd lows was not ideal for SPX, and ultimately it probably goes lower.

S&P 500 Technical Analysis