The stock market's two-week bounce appears to be losing steam. If stocks roll over do you short it or buy the dip? That's the question right now. The Chinese Shanghai market failed to crash on Monday and the Hong Kong and Japanese markets saw a huge bounce today. Meanwhile European stock markets snapped a five-day winning streak, which is normal since they were due for a dip. Yet short interest on the euro has been at record levels for three weeks in a row. If the euro continues to slip the dollar will rise and commodities will retreat.
Investors could be waiting on this week's economic data or the small parade of earnings from the retail sector before making a decision. With the major indices closing almost unchanged on the session I'm not adding any new plays.