Above are the three major indexes on the weekly chart. They are in order of weakest to strongest (from top to bottom). I suspect volatility will pick up now, and since futures are down right now (midnight Eastern time), I think we move down lower tomorrow and into next week.
I still like the pairs trade idea to short DIA and go long QQQ.
I think this price stall at resistance is the perfect opportunity for the bears to short. I think we’ve finally hit a local top and will continue lower for the next month. Of course, a move above the most recent resistance should have you stopped out.
If you want a lower risk trade, you can try the trade I suggested above.
Good luck trading, and see you next week like always!