Good week overall. It is hard to complain about the overall performance for the week, when all the trades finished in the green, and the market actually finished lower by about -1%.
Considering all of that, I’d say the week was pretty good to us.
Going into next week is interesting though, as we finished with a third consecutive week lower. While that isn’t much of an abnormality, finishing four straight weeks in the red is. In fact only in 2011 and again in 2014 have we seen that take place. So while not impossible, history suggests we could see some buying action before week’s end.
On the flip side, for a market sliding three straight weeks, you’d think we’d be down more than just the -3% that we currently are seeing. So I actually do think we could see four straight weeks of selling, though as the week wears on, I will be hard pressed to keep pushing the short positions as ultimately it could result in a hard bounce.
And really, hasn’t that been the biggest issue for the bears? Yeah, we finish in the red, but not much. The bulls constantly come to the rescue to make sure that the market doesn’t completely sell off on us.
For me, I’d like to see this head and shoulders pattern that is so blatantly obvious on the daily chart of all the indices playout next week and even give us one or two days of hysteria to the downside. I mean like 30-40 points. Right now, if you can get 20 points that is like a major rarity.
So if the H&S pattern does confirm it will be really interesting to see how much downside this market can take on after being down three straight weeks already.
Overall though, we had a great week of trading and I look to having it carry over in the week that is ahead regardless of the direction that the market decides to ultimately take.
