With the markets treading water at their recent highs we could be headed for a June Swoon. The S&P closed at 2,099 for the fourth time in the last five trading days. The one day it closed above at 2,105 the index was hammered he next day by the employment report. We can look at this two ways. Either the market is poised to break out above that 2,100 resistance OR that level has held and the next major move is lower. The problem with the upside scenario is that there is little in the way of positive headlines due out this week other than a potentially mega dovish Yellen in a speech on Monday. The preponderance of the coming events all have bearish overtones. Since the market exists to make fools out of the greatest number of people at any given time, the bearish outlook could easily lead to another monster short squeeze.
I am not adding any new positions to the watch list because any move higher from here is highly suspect for a failure and any move lower would be damaging to a new play.
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