My latest position in this market is yet another short – this time it is Ensco (ESV) – an oil stock that has seen a nice bounce of late after confirming the eight-month double-top. This pattern is still valid, as it is very typical to see a stock retrace to the neckline/resistance before moving even lower. My target price for ESV will 36.27.

On another note, the market we saw today couldn’t be any more bearish – to be up almost 2% in early trading and then see every dime wiped out and finish in the red, forms a very nice engulfing candle pattern, which comes after 3 days of indecision on the market’s behalf. Tomorrow will no doubt be interesting!

Here is the Trade Setup for ESV.