The Week Ahead

While I do not think we are done with our bounce we have been expecting and are really only a few days in to, I think we are seeing more aggressive than normal selling like we saw on the attempted 1/6 bounce that was prematurely but short on 1/8.

I suspect it probably won't take too much longer (in to next week) for the bounce to start to fail, leaving us some good opportunities to set up some nice short positions or add to.

I am still waiting on a few leading indicators to give clear signals , but this can happen very quickly.

As for early action next week, it looks like early weakness on Monday, although I think it will regain some strength in the later part of the day or some time afternoon-ish.

The important base-charts are seeing damage so I think we are getting very close, I'd still be patient.

The next trend in multiple timeframe analysis continues to deteriorate so it's already set up for a much nastier move to the downside.

Finally I think the IWM/Russell 2000 outperforms the other averages early in the week as it has not met minimum targets and has some better looking charts relative to the others.

I'll post some example charts just after this.

In addition, don't forget the damage already seen earlier today on Index Futures which is just additional confirmation.