Friday we had some pretty intense selling and this was to cap a 2.2% decline for the week, Last week we were up 2.4% and feel like the market again is trying to shake things up. Monday was the only day this week that had any positive upside across the board. Futures starting off negative tonight  currently down-1.50.

The big event this week is the FOMC meeting on Wednesday and we could easily see the markets slide into the release. 

At this point in the markets we are in a longer channel retracement.. A pattern that is long term bullish but short term negative. A lot of energy has been released to the down side last week and we have seen the market bounce back each time after a nice pull back like this, but each time we got the reversal we had a beautiful Stochastic daily oversold level and in this case we do not. This is VERY hard to time now. We could easily make our way back down to 20150 and under before we get that signal lining up.

A hedge against some longs is appropriate here I started some SPXU last week but feel i need some more shorts against the potential market pullback. 

Looking at some more shorts against the SPY and using the SPY as an example I might just keep the 215  price my stop area.

Also this market has only pullback 4 day from it's recent attempt at the highs. I would not panic yet but scale back and wait for the quality names to give us some special prices. 

Now for some possible Upside 

The 60 Minute Stochastics has been oversold for a few days now and this has bounced in each case looking back for many months. So tomorrow we will watch closely.

The watchlist video has been updated but because of the current situation I only added a few setups and the shorts I want to concentrate on are directly tracking the indices (SPX) 

You can see the overview Video here

and the individual videos are on the HPS page

 One last note last week's pullback was effected a lot by big components on the Dow and S&P earnings are continuing this week but we wont have as many large weighted stocks to throw things for a loop.

BIDU after the Close

Heres a current look at earnings coming up still. Pink shaded ones

See you in the AM

DTRS