Is This the Start of a Market Drop?So, is the drop beginning? It kind of looks that way, but there’s still no solid setup for entering a short position — and there hasn’t been so far.
The trend is still upward for now, and this current pullback might just be temporary.
What I like about the short idea is that August is traditionally a weak month for stocks .
Could this be the start of a big correction on the market? Yes, it’s possible.
It’s just a pity there’s no clean setup for a short. I’d like to enter, but I’d prefer to see a bit more confirmation on the chart itself.
In general, trading the index off of chart setups isn’t easy — perfect entries are rare. That’s exactly the case now. I’m watching and wondering how and when to catch the downside. Maybe I’ll end up sitting through the entire drop without a position :)
Overall, I’m in favor of the short — but for now, I just don’t see a clear entry point.
