8/1 - Market Analysis

SPX on the week...sideways...much action, but no results. It was a perfect balance of powers between bulls and bears...I still remain bearish...


USO able to hold off bears at support and is now above 100 again. Kind of hard to be fully bullish on oil as its been very weak intraday


UUP shows the story of oil. As long as UUP keeps failing to break its resistance, oil should not be able to fall much lower than its current levels


Financials looking very strong compared to the market. Still its better to stay bearish neutral than bullish on financials though. I expect a small leg back down coming soon but eventually a big move up afterwards...


The weekly chart of SPX still shows just how sideways we have been lately. A bounce up should happen but i foresee a false headfake down first before we rally up huge in the coming weeks.



Analysis: Very eventful yet uneventful when looking at where we ended the week. Technically it was a pure pause week. Bulls and bears battling back and forth all week for supremacy but in the end it was a stalemate. As indicated earlier, i feel cash is a good position to be at right now. We will most likely move lower from here but i don't expect it to move much lower to be worth a huge investment of the portfolio. The strength of the bulls this week got me thinking that we will move lower for a few more days but eventually, the next big leg is gonna be up. But overall, since we are in a bear market, and nothing major has broken in terms of resistance, the market can fall much lower, so be cautious of a move up if you got short positions, but don't start loading up on longs either.