Bearish Setups For The End Of This Bounce
Ryan Mallory | Jun 28, 2016 04:20PM ET
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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.