regardless of the “bullish feel” to the markets last week, all broad indices managed to close basically flat on the week. in the market overview video posted last week, i highlighted how many key indices, both market cap and equal-weighted were at or near key technical levels. for the most part, we finished the week where we started and what little upside progress the markets did manage was on exceptionally low volume.
basically, i view last week as a wash IMO… neither bullish or bearish. my intermediate to longer term bias remains to the downside for now while the short & intermediate uptrend remains firmly intact for now. therefore, i continue to feel that the current environment favors trading the most attractive individual stock patterns, whether long or short, vs. trading the broad markets (SPY, QQQ, etc…). of course, with the technical cross-currents of bullish price action against a back-drop of declining fundamentals and bearish technicals, a good case could be made to be in cash right now while the bulls and the bears (all seven of us still short) duke it out here right around key technical levels. throughout the day, i’ll try to highlight some of the more attractive patterns amongst the current setups and active trades that stand out.