The S&P 500 closed this week up a modest 0.58% on lower volume. This close was in the middle of the week’s range signaling indecision in the markets.

Also, the major exchanges are at the top of the trading channel. This is a warning for bulls opening new long positions as we could see a corrected towards the bottom of the trading channel.

One great sign for the market was that both Monday and Tuesday were strong sessions, closing on the highs for the days. After such big volume last Friday, the 19th, these days signal that it couldn’t have been all selling.

Still, the markets have seen 3 distribution days recently. If the markets hit 4-7 in a 2 week span, a correction is more likely.

Stocks to Watch (Longs)