Watch how earnings are received
With earnings season kicking off this week you should be watching to see how the market reacts to the reports.
The S&P 500 has been trading range-bound for the last couple days as it continues to retest the 2600 resistance.
I expect that 2600 will continue to hold lots of sellers and a breakout is less likely than a breakdown.
With Apple, Samsung, FedEx and the Airlines all coming out with negative revenue guidance in the last couple weeks I expect to see more bearish news in the coming earnings reports.
Some will beat, as always, but its not IF they beat that's important. Whats important is how participants respond to said beats/misses.
If you maintain a bearish view on equities like me, 2600 looks like the spot to short.
What would be the most surprising is if markets just move sideways for the next month..
The S&P 500 has been trading range-bound for the last couple days as it continues to retest the 2600 resistance.
I expect that 2600 will continue to hold lots of sellers and a breakout is less likely than a breakdown.
With Apple, Samsung, FedEx and the Airlines all coming out with negative revenue guidance in the last couple weeks I expect to see more bearish news in the coming earnings reports.
Some will beat, as always, but its not IF they beat that's important. Whats important is how participants respond to said beats/misses.
If you maintain a bearish view on equities like me, 2600 looks like the spot to short.
What would be the most surprising is if markets just move sideways for the next month..
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