The Bulls Bought The Dip In A Big Way -

The Bulls Bought The Dip In A Big Way

Mar 08, 2018Jeremy ParkinsonFinance0

My Swing Trading Approach

With the bulls buying the dip in a big way yesterday, it is tempting to add another position to the portfolio. However, with the market’s ultimate direction over the next few weeks still in question, I may keep things the same, for today, and simply focus on raising stops.

Indicators

VIX – Fell for a fourth straight day. The bears continue to pounce on any rip higher intraday.

T2108 (% of stocks trading below their 40-day moving average): Bullish divergence with the market finishing lower on the day, T2108 put together another positive day. Currently trading at 39%

Moving averages (SPX): Closed below the 50-day moving average for the fourth time in the last five trading sessions. Found support at the 5-day moving average as well.

Industries to Watch Today

Technology closed at new all time highs. This is where the primary focus of your portfolio should be at. Healthcare rising and looking to make a higher high on chart. Double bottom in Energy still in play, but the overall chart is showing a clear struggle taking place. This pattern may fall apart.

My Market Sentiment

The narrowing triangle, shown below is keeping price contained for now, but soon this market will be forced to choose a direction that it will likely stay on for the near-term. Today, watch and see whether it can break above, and close above the 50-day moving average.

S&P 500 Technical Analysis