There is a lot that could go bad this week. Apple (AAPL) earnings are after the bell, then you have Amazon (AMZN) later in the week. Not to mention the slew of economic news from the Fed tomorrow at 2pm eastern when they release their FOMC Statement and then again with the GDP to close the week out.
A combination or all of these events coming in sour for investors could lead to some downside in the market. For the past two weeks now, the market has essentially stood still and waited for these events to unfold – as can be seen by the insanely tight price action and lack of market volume.
Right now the market isn’t tipping its hand, so you have to still assume the long position until we start seeing the start of a breakdown in the market.
Until then, make sure to spend some time going over my list of short setups as they will assist you in coming up with a trading strategy should this market decide to start pushing lower again.