Finance

Light Volume Pullback

By Kurt Osterberg · On April 20, 2018

My Swing Trading Approach

I lightened up my portfolio yesterday, following the pullback, and booked 5% in my trade in Anadarko Petroleum (APC). The market remains bullish overall, and will look to add 1-2 new positions today

Indicators

VIX – Small bounce yesterday, I still expect a move lower that tests, at least, the March lows.

T2108 (% of stocks trading below their 40-day moving average): An 8% pullback yesterday, but still a solid reading of 60%. Daily chart remains bullish.

Moving averages (SPX): Trading above all the major moving averages. The 50-day moving average was tested and held.

Industries to Watch Today

Energy is starting to look tired, plus a Donald Trump tweet this morning will likely weigh on the sector. Financials made a strong comeback yesterday, and made a secular move against the overall market action. Staples look incredibly weak and may see further downside.

My Market Sentiment

Light volume pullback yesterday, though more volume than what was seen each of the previous three trading sessions. Tested and held the 50-day moving average. I’m not concerned by yesterday’s pullback at this point, but I am looking for a bounce here, today.

S&P 500 Technical Analysis