Market Rolling Over..

9:15am EST I believe I was a little early on my "market is rolling over" call a couple of weeks ago. However, I think we are beginning to see evidence of that this morning. The futures are weak, the dollar is strengthening, and the oil market is as bearish as I have seen it in a while.

The potential saving grace for the bulls is earnings. If companies come out with stronger than expected earnings AND a solid outlook AND solid revenues, the market can rally from here. the problem with that scenario is that there are three hurdles to get over and it has to happen for most of the major companies in the markets.

On the positive side for the bulls is that the weekly charts are starting to take on a reverse head and shoulders pattern. This is especially true for the S&P 500. While we still need to work on the right side of the shoulder. It means that the correction will be more shallow than the lows we saw in March, and the trade can be dramatically higher from there.

I am carefully adding to some longer term trades today, but I will spend a good amount of my time on the sidelines. Downward trending markets tend to be a little harder for me to trade, so I tend to stay away. A lot of trading is understanding your personal style. It is all a part of managing risk. Until next time, stay low risk..