Looking at the SPX chart to the left we are breaking below November lows but are quite oversold. But oversold means nothing at this point. Keep and eye on that volume Monday because Friday's volume appeared to be the strongest in 3 months, so maybe it shows that selling could be climaxing. Either way, there is no reason to be all that bullish just yet on this market.
With exception I think it will be a good time to get into the metals, specifically gold. It does like the gold market is days away from stabilizing and continuing its uptrend. At the same time, the dollar looks strong and the Euro seems like it wants to break under 1.25.
Economic data this week is heavy and includes:
Monday- Personal Income and Spending, Core PCE, Construction Spending, ISM Index
Tuesday- Pending Home Sales, Auto and Truck Sales
Wednesday- ISM Services, ADP Employment, Fed Beige Book
Thursday- Productivity, Unit Labor Costs, Jobless Claims, Factory Orders
Friday- Feb. Jobs Report, Consumer Credit
For Monday, I want to short into weak rallies. The pivot point is up at 739.50. Not too confident we get back up there, but if we fill the gap down and then roll over then I want be selling it. There could be some major pain early this week if we cannot get any momentum back above our daily pivots as they will provide plenty of resistance.
Lower prices might seem unreal, but they can and probably will happen. Trade what you see, and not what you hope for. Stocks don't lie. People do. Trade safe.