Last week marked the first time in eleven weeks where the market closed below the previous week’s lows. It doesn’t sound like a big achievement on the surface but when you look at it closely, it represents a shift to the status quo and one that may carry over into this week.
While the market was able to shed over one percent on the week, we were, through our trading, able to increase our portfolio’s value. That is always an ideal scenario for a trader.
I’m open to wherever the market wants to take us. If it wants to take us lower, there are another 2-3 positions that we can add to capitalize off of that. If it decides to bounce, we have just a couple of positions we’d need to cover, and then it would be rather effortless to get long in the process.
My thought is that we’ll see another week to the downside. There is a lot of support at 2040 area, so either that area holds and we bounce, or it breaks and it gets much uglier.
It is the start of a new month and we’ll get to see whether the “Sell in May” goes into effect like it has in recent years or whether we see the market rallies further. My belief is that we will see the former.
