Inflection Point For The Market

My Swing Trading Approach

I’m looking to see if this market can bounce today. I think there is a good chance for it to do so. If it does, I will buy the bounce by adding 1-2 new long positions to the portfolio. I don’t see the fear being there to get short at this point in time.

Indicators

VIX – Minor moves higher on VIX with no real fear setting in during the three day sell-off.

T2108 (% of stocks trading below their 40-day moving average): Currently at 46%. Price, overall on stocks, is holding up fairly well during the recent selling.

Moving averages (SPX): Broke below the 5 day moving average but still holding the 50-day. Today will be big for the MA’s as they have all converged together.

Industries to Watch Today

Utilities the strongest sector again yesterday, and still sporting an inverse head and shoulders pattern. Technology held up well yesterday and still the strongest sector overall. Healthcare still very solid as a whole. Financials and Industrials struggling some of late.

My Market Sentiment

Inflection point for the market. Declining support, rising support and the 50-day moving average being tested. Needs to hold for the sake of the bulls to keep this rally going. Also, SPY down three days in a row. You would have to go back to last March tor a time when it made it four in a row.

S&P 500 Technical Analysis