I think the bulls are probably starting to stretch themselves a little too much here. 

A lot of resistance on the charts, and the bears are close to confirming an inverse head and shoulders pattern, which means that neckline will offer quite a bit of resistance going forward. 

If the market decides to push stocks lower in the coming days, there in the watch-list below, you’ll find a lot of solid charts to take advantage of. The banks report on Friday, so you may want to wait until after then, before swinging in in any of the financials. 

Just remember, it doesn’t hurt to short some here as a hedge against the overall market, and to protect some gains, however, you don’t want to be aggressive with those short positions, because very little right now is actually working for the short sellers .

So if you find yourself with a respectable profit on a short trade, take it and move on. 

Here’s my bearish watch-list. bearish watch list swing trading 7 10 18

 

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