Market Update

Market sold off on Friday but at the end buyers stepped in and most of the losses were covered leaving a bullish hammer. Last couple of days, market has shown some weakness in the begining but nothing bearish on the price structure. It is overbought and might be just working the overbought levels. Need more price data to confirm the direction. Financials were showing weakness and we took a small short position in XLF. $VIX is still in no-mans land. JNK reached new high showing risk appetite is back in the market, it might be forming a divergences before rolling off.

I am listing 2 charts one bullish (SPWRA) and 1 bearish (EPP), we don't have any position in these stocks and ETF.

SPWRA Weekly: It is showing head and shoulder pattern on weekly chart, break of the red line will activate this pattern. Left shoulder is little lower than right shoulder or right shoulder is little higher than left shoulder (not perfect) but still valid.

SPWRA Daily: It is showing the bullish flag or wedge pattern, break of the green line is bullish. It has also tested the flag line. 60 minutes chart pattern (not shown) is not ideal so proper risk management is required. For aggressive investors early entry can be taken by using lower time frame chart.

EEP Daily: It is showing double top pattern, decisive lower break of green line will activate the short signal. Bottom green line is likely target. Friday's price action has left a long lower shadow (bullish) but rebound volume is questionnable.