Good morning everyone, and welcome to all who recently joined!
As previously mentioned, more volatility is to come. We were looking at support on the S&P 500 at 5,675, which we got a perfect test of, followed by a slight bounce Friday into the close. The fact that we keep testing this level indicates that the market wants to go lower. But again, we do not want to try to predict a direction. If our level holds, we can play the long side with conviction, and if it breaks and closes lower on the weekly level, then we will focus more on the short side. For right now, we plan to reduce share size and book profits when they present themselves.
Check out this week’s trade ideas.