The market made a sizable surge up last week after its slight correction the week before. The S&P 500, the Dow Jones and the NASDAQ each made record highs in the midst of the election aftermath. Not a single sector this week had a negative performance.

It will be interesting to see how the markets respond next week. The next Federal Reserve meeting will be held on Wednesday and the markets could fluctuate based on what transpires. The long-anticipated interest rate hike is expected to finally be announced at this meeting. Generally, the market does not respond positively to interest rate hikes since raising the interest rate can put a damper on economic growth.

Technical Analysis
Last week the S&P 500 bounced off a strong line of resistance from back in August that now represents a line of support after the market rallied yet again. According to the many technical indicators including the stochastics oscillator and the directional movement indicator, the market is in an extremely overbought position. As of now the outlook for next week appears to be bullish but it might be best to wait for a change in directions before placing anymore long positions. Given that the Fed meeting may sway the market to some extent, it might be best to hold off until after the meeting.

What next?
Regardless of how the market might change in the future, right now the market is certainly in a bull rally. If you choose to trade at the beginning of this week, pick your trades accordingly.



Weekly Watch List
Long trade ideas (for in the event that the market continues to go up)

$AGIO, $CRIS, $ETB, $FPRX, $HALO, $HRTX, $IRW, $MACK, $MCC, $NBIX, $PSTG

Short trade ideas (for in the event that the market reverses direction)

$AGR, $ARIA, $CYS, $HPS, $NAD, $NAME, $PICB, $PNF, $SRC, $STOR, $VER, $CPN, $ACIW, $CPN, $EVRI, $RNG

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