We saw the high volume sell-off in the markets last week. So what's next? I believe the next few days will see consolidation or some retracement of the sell-off, so now is not the time to go short or buy put options. I would watch the following sectors for potential bear flags formation in this coming week:
Here's a few charts to show the near vertical down move accompanied by high volume- characteristics of potential bear flags: Research In Motion Limited (NASDAQ:RIMM) DryShips Inc. (NASDAQ:DRYS) Peabody Energy Corporation (NYSE:BTU) Exelon Corporation (NYSE:EXC)
Quite a quiet week ahead in terms of economic news.