Both S&P and Dow indices are threatening their 200-day moving averages, so Monday and Tuesday are critical days for the markets.
Coupled with the fact that this is becoming a news-driven market, I would repeat my mantra for 2018 to scale back, and even sit this market out until it figures out what it wants to do.
Nearly all the recent bull flags that I highlighted did not break out, which meant no losses, and many of the recent bear flags I highlighted are breaking out or broke down some more.
But that does not mean that tomorrow (Monday) won’t yield another surprise or herald a week of further volatility.
This is the type market that you can learn from as you watch it … No point in getting a bloody nose when you know that’s a likely outcome!
So keep your powder dry for the moment and I’ll give an update shortly.
By the way, also look out for my Options 101 webinar on Wednesday. I’ll send the link out separately, but if you want the ability to trade very different market conditions, then options is a must-have skill to acquire.