My Swing Trading Approach
I am coming into today 100% cash, I closed my one short position yesterday for a profit. I am not totally sure where this market goes from here. We could see a bounce, but there is also little support underneath until 2801 on SPX is reached. I plan to watch the market action early on and look for an identifiable trading edge to capitalize on.
Indicators
Sectors to Watch Today
Energy took a huge hit yesterday, and broke the 50-day moving average and appears to be in a free fall at this point. Don’t touch it. Healthcare has held up better than any sector of late. Staples continues its decline for a sixth straight day. Testing some key support, before things could get ugly on the downside. Technology reversal yesterday, raises fears of a potential rollover, but nothing confirmed at this point. Financials giving up much of the gains from the past month, while Industrials, looks like a sector that may be setting up for a bounce here.
My Market Sentiment
Four straight days in the red. The market tends to struggle to extend it much further without a bounce of some kind. In March there were six straight days of red, but the selling was much stronger. This sell-off that we have seen over the past four days hasn’t been on the strongest of volume readings. Should the selling pick up again, I would look for strength to present itself at 2801 price level.
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