Subprime woes are back. Dow Jones and S&P500 have their previous week’s gains wiped out, on higher volumes as well.

Check out Dow Jones’ weekly chart:

For the Dow Jones, a resistance seems to be set up at the 13,700 zone. Testing the 23.6% Fibonacci retracement line for the 2nd time. Perhaps really going into consolidation after the 8th candle reversal pattern?

Similarly for S&P500:

Resistance at 1540 zone. Also testing the 23.6% line for the 2nd time. And check out the 8th candle reversal as well.

Let’s see how the market will react next week. Meanwhile, some good trading reads for the week:

• SimplyOptionTrading shares a method for predicting the market’s next moves
• Conrad reveals 2 new candlestick reversal patterns
• AfraidtoTrade shares some insights on a book on sector rotation
• Besides qualities of good traders, TradeFeed also discusses the qualities of spouses of traders.

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