Bulls Need To Pull It Together And Rally The Markets Today

My Swing Trading Approach

My portfolio is quite light going into the open. The bulls need to resume the uptrend here. If so, I’ll be a buyer, otherwise, I will flip to the short side.

Indicators

VIX – 6% rally yesterday and back above 20. Possible we see a bounce here.

T2108 (% of stocks trading below their 40-day moving average): A significant drop of 13%, back down to 28%. Caution is warranted here.

Moving averages (SPX): Rejected at the 20-day moving average, lost the 50-day, but held the 5-day.

Industries to Watch Today

Technology was the only sector that finished higher yesterday. Energy still struggling to gain any traction in the market bounce. Consumer Cyclical and Financials held up very well.

My Market Sentiment

Second day of seeing the 20-day moving average reject price. The bears have a chance here if they are going to resume the downtrend. Bulls need to pull it together and rally the markets today, otherwise, it may get very ugly again.

S&P 500 Technical Analysis