The market has been very vulnerable and weak as we’re trading in a “short-the-pop” type of environment.
The last two weeks the market has sold off after negative comments from the Federal Reserve, as the S&P 500 (ES) hit the weekly mean and dived straight down for a complete rollover on Thursday.
When the structure changes like this, we need to be ready to “short the pops” and not just buy the dip like so many of us are conditioned to do. We’re seeing a downtrend as the ES broke below the weekly mean and broke inside of the Ichimoku Cloud, so every pop now becomes a short opportunity.
We will see a green day eventually, but as of now the market is vulnerable and that is what matters most. We will lay out major inflection points to mark on your charts, so we can gauge future market moves.
Stay Focused!