Rally Set to Correct

After evaluating scans over the weekend we find very mixed conditions as we move into the new week. Last week we mentioned that we might explore a hedge short side trade. It seems to make sense to do so considering such a wide range of bullish and bearish set ups that exist in the market after Friday’s trading. This strategy makes even more sense when we consider the fact that indices are trading very close to resistance levels and are projecting at least an initial failure (we wouldn’t be surprised if the failure at support was short lived as longer term momentum favors the bullish case here).