Market Breadth -

Market Breadth

Sep 17, 2018Jeremy ParkinsonFinance0

My Swing Trading Approach

I didn’t add any new long positions on Friday, as the market conditions and breadth was poor. I booked profits in Take-Two Interactive Software (TTWO) at $134.30 for a +2% profit. I am open to adding another position, but the bulls will need to show up in order for me to do so. Sideways or negative price action won’t do it.

Indicators

Volatility Index (VIX) – Five day losing streak for the VIX, dropping another 2.4% down to 12.07. Potential bounce in play here, testing key support in the 11.90 area.

T2108 (% of stocks trading above their 40-day moving average): Interestingly enough, has pushed higher the last five days, but has hardly moved or gone anywhere. This is indicative of poor market breadth.

Moving averages (SPX): 5-day moving average back above the 10-day moving average, price is trading above all the major MA’s.

Sectors to Watch Today

Financials showed life for the first time in ages yesterday, but still a sector that remains dead-weight. Industrials still one of the market’s best sectors and should be a key part of the portfolio. Materials remains in a downtrend. Stay away Utilities consolidating over the last seven trading sessions, look for a break higher form here.

My Market Sentiment

I am not a fan of the market breadth right now. We are looming just below all-time highs, and half the stocks are struggling to show the same enthusiasm. Bearish wedge on the charts still a factor going forward as well. Be careful.

S&P 500 Technical Analysis