Watch out for volatility ahead!

E-mini S&P daily chart

E-mini S&P daily chart

Since the long red candle last tuesday, market has been hovering around the support / resistance 878 level. Technically it looks weak due to the formation of the head and shoulders, therefore we are comfortable to hold on to our 878 shorts from last week, with stop at 905. Lots of earnings from major companies this week, so watch out for the swings!

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