Energy Is Still A Beast, While Financials Finally Woke Up

My Swing Trading Approach

There are some nice swing trade setups to be had, but I am concerned about adding additional long positions to the portfolio today. Tightening the stops will be in order.

Indicators

VIX – Expected bounce yesterday, considering the previous day’s close at 9.15. May see a continued bounce again today.

T2108 (% of stocks trading below their 40-day moving average): The past three days have been concerning. Hardly a move over the last two days – just 1.21 points to 65.71%. Acting as a divergence right now, as the indicator should be in the mid to upper 70’s.

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

Industries to Watch Today

Energy is still a beast, while Financials finally woke up. Industrials still very bullish, and Technology still rallying hard. Basic Materials showing some slowing, while Healthcare showed some profit taking yesterday.

My Market Sentiment

The stock market is well over-extended at this point. Can it keep climbing? Certainly, but the market’s risk/reward at this juncture, isn’t the most favorable.

S&P 500 Technical Analysis