I still think this market is eventually going to 850 at a minimum and potentially a bit lower. But for this week at least initially I would expect to see a weak bounce back into the 890s and perhaps even into the 900 resistance level. Everyone is expecting this head and shoulders to breakdown as a sure thing. I get a bit nervous when I hear everyone predicting the same thing; and being so confident about it. It would not at all surprise me to see the market throw everyone a curveball and trade up for a few days and make another lower high before then finally dropping and breaking down.
Lots of earnings coming out this week so it could be a wild one. Overall I would still have a bearish bias going forward but the market is oversold and I would expect to see the unexpected this week and perhaps be ready for the market to have a weak bounce off this level. After all, the market will move and take as few people on the ride to profits as it can.
Longs>>> CTB, AES, CPA, MVIS, PPD
Shorts>>> COH, ANR, GNK, DE, DD, MLM, FTO, IEX