Huge Lift Higher In The Pre-Market Today

My Swing Trading Approach

I have more positions today to the long side, then I did, coming into yesterday. I need to see that this market is serious about holding on to today’s gains, and following through to the upside tomorrow. As a result, I may hold off adding any new positions today, and at most I’ll one new long position if the right setup comes along.

Indicators

Volatility Index (VIX) – Almost broke the downtrend off of the February 9th highs. Instead closed right on it, and likely to retract this morning with premarket strength in the indices.

T2108 (% of stocks trading above their 40-day moving average): It is getting ugly with a matching 11% move in the opposite direction yesterday. Back to 47% and the potential to go to 40%.

Moving averages (SPX): Now SPX has lost the 20-day moving average in addition to the already 5 and 10-day break.

Sectors to Watch Today

Real Estate continues to trade in a sideways pattern going back to late June, but near its recent highs. Utilities testing a key resistance level, and may be looking to make a move higher if resistance going back to January falters. Industrials remain a strong sector for a push higher. Financials still working its double top pattern. Correction in Energy is getting serious, and no way would I play that sector at this point. Coming up on key support from the May and June lows.

My Market Sentiment

Tons of back and forth so far this week – huge lift higher in the pre-market today, which makes for a very volatile week of down, up, down, up. It will be important for the bulls to maintain the gains, and if possible break Tuesday’s highs.

S&P 500 Technical Analysis