The S&P 500 is having issues with the 50-day moving average this week, much like it did with the 20-day moving average a couple of weeks ago.
Three out of the last four days have seen price rejected at this key moving average. This is a problem if it persists throughout this week. But while price isn’t breaking through this barrier, it isn’t seeing a steep pullback either. In fact, the market has managed to rally a small amount today and keep just below the MA.
Most likely, I think the bulls will manage to gap over the 50-day MA and make the resistance a mute point.
Below is my bearish watch-list that I am following. I don’t have any positions at the moment, but should the market turn south, I will definitely be looking to add a few. So keep it handy; right now, I don’t think there is reason to short the market, but if this bounce attempt runs out of steam, you’ll have plenty of reason.
Here’s the bearish watch-list of short setups:
