It’s August (already!) and historically that is a bearish month for the stock market.

There tends to be more sudden and swift sell-offs then what traders are used to seeing, and the last legitimate pullback in this market was in 2011, during the month of….you got it, August!

Go back to 2010, we seen August down 5 out of the last 7 times – that is quite impressive considering the bull market of the last 8-plus years. 

So with us on a streak of two straight years of August being bearish, colliding with a market winning streak over the last four months and 8 of the last 9, could the S&P 500 actually manage to pullback some this month? 

I am “thinking” so, but I am going to let the market “tell” me so!

In anycase, here are the bearish trade setups that I am watching for now:

bearish watchlist short setups

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