Don’t Short a Dull Market?

Editor’s Note: US markets and the Traders Agency offices are closed all day tomorrow for the Thanksgiving holiday. Look for your next issue of Josh’s Daily Direction to hit your inbox on Friday afternoon.

There’s an old saying on Wall Street… “Don’t short a dull market.” This comes up a lot around the holidays when major market participants step away from their trading desks.

The idea is that when trading volume is light, there are fewer sellers and it’s easier for investors to push the markets higher.

Of course, there are no guarantees in the market, but this certainly seems to be holding true this week.

The major indexes rose steadily throughout Tuesday’s session, but we’re expecting the downside action to pick up again after we get past the Thanksgiving holiday…

S&P Pushing Resistance Again

On the daily time frame, the ES market is once again pushing up against resistance at the top of its short term up channel…

Daily Chart of S&P 500 (ES) Futures — Source: TradingView

The ES daily time frame is in a down channel. The market is making lower lows and lower highs.

The market hit the top of the channel and is waving bearish towards the bottom of the channel.

The ES is near a high price, hitting the top of a trend line where resistance can be found.

If resistance holds, it is expected the market to push bearish towards the bottom of a small level of daily support at price point 3,803.25, about -788 ticks below the market.

Therefore, it will be a good idea to turn to the one hour time frame and look for high prices in the sell zone.

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Keep on trading,

P.S. For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.

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Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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