Following the dramatic sell-off after the Brexit results came in, we saw massive short-covering in the S&P 500 last week as traders got caught in the wrong side of the market. This week, we can look to play both sides of the market (long and short). We would consider buying at support near 2040-2060 area on a pullback. There may be a selling opportunity at overhead major resistance near 2115.00, but only on an obvious price action reversal sell signal. We are mindful of this market's underlying bullish momentum and visually the chart does look like it wants to move higher.
Crude Oil in a Range, Mildly Bullish
Crude oil is currently trapped in a range between 51.65 resistance area and 46.00 support. We can look to trade both sides of the market if we get a sell signal at resistance or buy at support. However, we would prefer to be a buyer on a nice signal near or above support and expect it to rotate up into resistance. We would also consider selling if we had a genuine signal but that's unlikely this week. Mildly bullish to sideways bias.
Gold Continues to Push Higher
Gold surged higher late last week as it broke up and out from an inside bar pattern that formed last Thursday. The trend is obviously up in this market so we will look to be buyers on any weakness or pullbacks this week to trade in-line with the uptrend. Traders can watch the 1-hour, 4-hour or daily chart time frames for price action buy signals to get long on any pullbacks this week.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.