Looks to be another consolidation week before the next decline. Being that the market was so extremely oversold, the only rally we truly got was +130 points. Very pathetic, and signals that this is not the bottom of the declines yet. The week has ended up only 0.7% up, hardly a comeback by the bulls to a near 10% decline in May. Further supporting the fact that this was not a comeback rally, but instead a rest period before the next sell-off. MACD also reset and is again pointing down again, signalling further declines to come Tuesday.
Given the larger range of the consolidation this week, compared to last, I expect a larger decline to occur next week if we do (more than the -5.4% we got last week). I also expect selling momentum to pick up pace. The next sell-off though, I do expect a more significant rally upwards, so Long then if anyone is choosing to Long now. We also have a shortened trading week thanks to memorial day Monday. Another reason why I believe selling momentum will pick up, as it is compressed into a narrower time period for sell-offs. Plus, we will have 1 extra day this weekend where the markets are susceptible to bad news.
However, if over the 3 days we get anything stimuli related then all bets are off and we are rallying higher. Highly doubt it though. And that is a "hope" trade. Never trade on hope, imo.