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Bearish Setups For The End Of This Bounce

Published 06/28/2016, 04:20 PM
Updated 07/09/2023, 06:31 AM

Tuesday was one of those days where the market gaps up -- and in some cases down -- and does absolutely nothing thereafter. Indeed, Tuesday's price action bored me to tears. Over the past three trading sessions, the market has essentially rewarded those willing to gamble on the overnight price action, which is no doubt risky.

What is concerning for the bulls is that Tuesday's price on the Russell index and the S&P 500 both saw rejections at the 200-day moving average. That could change, but it's reality.

The following setups are ones that are primarily bouncing into resistance and will make solid risk/reward trade setups if this market turns lower. I've removed the setups that have had ungodly sell-offs, simply because there is no trade setup there at this point.
Bearish Setups

Original Post

Latest comments

well,. . It was biggest rally in last 4 months.. . Nothing was rejected, but rally was little short to go through resistance.. . Usually such rally last more then one day..
100% agree - I typically expect them to last 2-3 days about. Otherwise, bulls will forget Brexit ever happened and we'll be at new all time highs next month.
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