What looked like an impossible endeavor on Sunday night when the futures started trading, is near reality now as the S&P 500 has managed to recover 30 points off of the lows from the ES futures Sunday night and 16 points since the market opened Monday.
It may be a simple gap fill before the market resumes with a move lower, or another legitimate dip buy that gets investors talking about a new challenge of all-time highs.
For now though, there is no "right" direction to be trading -- the short-term direction is unclear. but testing the market with a one or two positions is just fine. What you want to avoid is being heavily long or heavily short at this juncture because the script could go in either direction.
Below I've put together my initial watch list for the week. There are plenty of gems in there, particularly with Facebook (NASDAQ:FB), which sill looks solid and ready to resume its climb higher, or there is Pulte Homes (NYSE:PHM), which is sporting a perfect inverse head-and-shoulders pattern.
Here's The Bullish Watch List:
