The S&P 500 is down for a third consecutive week by 0.5%. In 2016, which is still in green territory, it is up by only 0.2%. Last week, the quarterly earnings reports failed again, with the retail sector leading the decline with a drop of 4.6%, which pushed the whole market down. The market is now 4% under last year's all-time highs and the market multiple is now at 17 - a little higher than the 16 average. In order to justify a multiple of 17, the market must show a positive financial view, however, based on the last quarterly earnings reports, this is not the case, therefore, I expect the market to continue to decline. 

Let's take a technical view of the market. When we take a look at the S&P 500 daily, we can see the decline last week and watch this very strong head-and-shoulder formation right at the 2040 area. If this area is going to be broken, and I believe it will, the next station will be 2000 and of course the big test will be in this area. I think we will get there very soon, so hold tight - it is going to be very interesting.

Let's take a look at the last week picks. Firstly, we had Danaher (DHR  ). DHR long did not trigger. It looks fine, but did not get to our first target, so we are still following DHR. Second pic last week was American Tower Corporation (AMT  ) long. AMT long did trigger and it is anywhere between profit and loss: right now it is more loss and I expect it to continue higher. Anyway, stop-loss as always is at 3%, so in case it gets there we move out at loss of 3%. That's a maximum loss.

Let's have two picks for the week. My first week for the week is LyondellBasell Industries (LYB  ) short under 80 USD. LYB is a chemical producer for the oil industry, so if the market is going to move down and especially if the oil industry is going to move down, short in LYB should be very interesting. My second pick for the week is Stratasys (SSYS  ) short under 19,73 USD. SSYS is a producer of 3D printers and I think this industry is way overrated. Even though it moved down from the highs, I think there is another room for short in this industry.