Bears take the Initiative

As I have mentioned in almost every single one of my posts I'm still bullish. However, Bulls don't seem as strong as they used to be, so my stops are in place ready to trigger if needed. During my Weekend Market Overview (link below) I analyzed the trading range where the S&P is currently stuck at.

If we analyze the 39-min chart the powerful rally that erupted after the Dec/03 bottom just lasted a couple of days.  The S&P hasn't been able to even get back to the historical high from Nov/22 (4,743.83), it's stuck below the resistance line of 4,721. That is a sign of weakness.

Reviewing the current level of Monthly New Lows is even less encouraging (columns G and H), if things continue like this, next weekend I'll start looking for Industries that are showing a lot of weakness in order to see if I can find good candidates that I can short.

Check the last seven bars of the weekly chart below, the S&P is not going anywhere (click the image to magnify it). But the uptrend is still in place, I won't go against the Market direction unless an Industry is really showing a lot of weakness.

As a summary, it's not a good time for a person like me, trading the weekly chart, to open long positions since Bulls are showing a lot of weakness. With today's Market action I think it's still too early to start shorting stocks, but the idea is now crossing my mind. If the Bears manage to start breaking supports (clearly marked in the 39-min chart) and eventually the weekly trend line is broken then it's time to see if the current strategy still works.