Last week the market continued to teeter at about the same level as the week before. The S&P 500 was nearly flat, as it continued to fluctuate within a pre-established sideways range on relatively low volume. As the market continues to fall flat it is unclear if the S&P 500 will break through this recent sideways channel into new highs or if will retrace back and drop off.

This upcoming week is light in terms of new economic data given the absence of company data next week and that the markets will be closed on Monday. Due to the expected low volume next week, the market is anticipated to be relatively quiet with minimal volatility.

Technical Analysis
As previously mentioned, the S&P 500 is continuing to fluctuate within a predefined range. As of now the directional movement indicator lines have crossed once again leaving the DI- above the DI+ line. This of course is a signal that short positions may be preferred over long positions for the short term. Aside from this signal it is also noticeable that the volume last week was relatively low and decreasing as well. This could be a harbinger for a potential sell off later on.

What Next?
Regardless of future events to come, as of now it appears that it would be best to focus on short positions over long positions given last week’s market data. Of course, in the event of a sudden upswing, long positions would be preferred.

Happy Trading!

-Ethan



Weekly Watch List
Long Trade Ideas (for in the event that the market reverses direction)

– $COLM, $DDD, $EZPW, $KEYW, $HLX, $MMLP, $NTCT, $NVCR, $ORBC, $ADSK, $BX, $HAWK

Short Trade Ideas (for in the event that the market continues to move down)

– $AMT, $BUFF, $AWF, $CPN, $EPR, $HIX, $IRT, $CPN, $AIV, $TUES


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