Finance

The 20-Day Moving Average Was Broken Yesterday

By Kurt Osterberg · On April 13, 2018

My Swing Trading Approach

I added one new position, while subtracting another, Bank of America (BAC), for a 4.2% profit. I will look to add one additional position before the end of the day today, should the market hold up.

Indicators

VIX – VIX breaking down with its lowest closing since March 21st. Down 8,7% yesterday, and breaking down through recent price consolidation.

T2108 (% of stocks trading below their 40-day moving average): Indicator was flat following the end of day selling in the market that took it from being well in the green, down into the negative.

Moving averages (SPX?): The 20-day moving average was broken yesterday, which was huge for the market bulls. Now the 50-day looms large, and anysolid rally should see a test of that MA.

Industries to Watch Today

Technology and Financials led the market higher yesterday, while Industrials and Healthcare did quite well too. Utilities saw a significant amount of selling yesterday, and is on the verge of breaking down and ruining the bullish basing pattern it had been working on.

My Market Sentiment

The 20-day moving average was broken yesterday, which was a big deal, as that moving average had previously served as significant resistance. The looming Syria attack is looming large on the market, and while the market is showing a strong amount of bullishness right now, the headline risk could easily change that.

S&P 500 Technical Analysis