Weekly Watchlist 10/5

Going into this week the market should try to find support in this 1015-1025 area on the SPX. I think a small early week bounce could be seen or we could just consolidate around here. I do still think there is a shot they push this market down to 980-1000 in the coming weeks. If that happens I think the buyers will step in. For this week the currencies will tell the story as they often do. Not much data out this week but the first batch of earnings are out.

There are plenty of charts out there that offer some bullish setups this week and then some that look more bearish. The pullback that we had last week was just that. A pullback. The weekly charts were so overextended that they deserved a breather. For now we are seeing some controlled selling in select sectors. I do not see any reason to become a top calling bear and overly concerned about the downside. Until we have a key level like 980 broken to the downside or the 20ema crosses under the 50ema on the daily then you should not fall in love with the downside.

The watchlist:

Longs>> COP, CHKP, DF, CL, NTY

Shorts>> ANF, MCO, MHP, DSX, HES