I spent quite a bit of time this weekend on a more detailed analysis of the possible outcome we may see out of this turn. So review both of the posts and use them as a guide for this week. The markets are waiting anxiously on the "next" big plan which in my opinion will be one of the key drivers leading this quarter.
This week I see the market remaining in a sideways low volume pattern until this "big plan" is resolved or turn lower giving up hope until there is a reason to believe otherwise. I do not see us trading much towards the upside unless we see outside interventions.
What are some of the signs to look for? V-Bottoms where you can see strong turns towards the downside with fast reversals - watch the daily candlestick patterns carefully this week. Whatever will happen, do not chase, better to sit out on a few points and wait for the retracements then getting caught in one of those whiplash trades where probability and risk are non manageable.
If this is the turn to the downside wait it out until we have made a decision in the 718 to 767-770 range. Sit and wait, let the market decide this week what we will do and then get ready for some good trading for the rest of the quarter.
Good luck everyone. I may be posting less this week due to personal travels so review my weekend posts whenever you are in doubt if I am not here for more detailed guidance.
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