Short Setups For The Potential Sell-Off

It is the best rally that the market has seen in over a month. But there is plenty to be concerned with here still. 

For one, SPX doesn't seem to crazy about wanting to push through the 20-day moving average, but it hasn't been rejected by it yet either. If a hard rejection happens this afternoon, then you'll definitely want to get concerned with the market again. 

On the flip side, I  day-traded LinkedIn (LNKD) for a quick 2.8% profit today as the stock absolutely took off and never looked back. But I took the gains on the trade because 1) sustained stock increases on a day-to-day basis is difficult, and 2) outside of today, the market hasn't moved much at all, and so with today's quick pop in LNKD, it was a gift, and I didn't intend on wasting it. 

I'll be doing a post later today on it, but I want to go ahead and bring your attention to a forming head and shoulders pattern over the past month on SPX. Which is one reason why I am aggressively taking profits on long positions right now. While I wont' sell everything today, I don't think we are out of the woods yet and as a result, the short setups below will be extremely helpful once this market does turn lower. 

For now be patient, be aware and be ready to execute when the time comes. 

bearish watch-list 5-10-16

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