Large Gap In SPX Chart -

Large Gap In SPX Chart

Jan 16, 2018Jeremy ParkinsonFinance0

My Swing Trading Approach

I may look to add another 1-2 long positions to the market today, but the parabolic nature provides a great deal of concern for me going forward, and how long this kind of momentum can be sustained.

Indicators

VIX – Up six out of the last seven days – surprising, considering the bullishness of the market. A divergence clearly worth paying attention to.

T2108 (% of stocks trading below their 40-day moving average): Just a 1.4% move higher, despite a very bullish move for the market. Breadth is not great here.

Moving averages (SPX): Still holding on to the 5-day moving average and all the other MA’s.

Industries to Watch Today

Utilities and Real Estate continue to falter, with the former more than overdue for a bounce. Consumer Defensive plodding along, not overbought. Energy, Cylical, Financials, Industirals, Basic Materials, Healthcare and to a lesser extent, Technology are all parabolic and rising in an unsustainable manner.

My Market Sentiment

The gap being seen this morning, could result in an exhaustion gap leading to some sideways price action over the coming weeks. Stay tuned.

S&P 500 Technical Analysis