Going into options expy week the markets are still holding tough near that 1000 SPX level however, as you can see from the chart the SPY formed a bearish inside candle doji pattern on the weekly chart which could point to some selling pressure this week. If the market decides to sell off into the last few weeks of August you can look to the 960 level to provide support as this was previous resistance last month.The next few weeks are seasonally pretty quiet and low volume trade as the summer vacation season is winding down and people take off so we can easily just stay in this trading range as well.
As usual the dollar will dictate a lot of the price action in equities and if the dollar rallies as it looks like it wants to; then stocks could be due to pullback. If the dollar rallies, then a lot of fluff will be taken out of the commodities further hurting stocks. Again, the likelihood of a sustained pullback coming in mid August is low, but it should be watched.
It def feels like there are fewer and fewer opportunities on the long side of the market as I look thru my charts, which is why I guess you can say I'm cautiously bullish but if the market fails to rally early in the week it would be prudent to start looking at the short side.
The watchlist:
Longs>>> IVN, ABV, NRG, EMC, ONNN, SCO
Shorts>>> APOL, GNK, OSK, SOHU, PBR, FISV
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