My indicators are giving bullish readings this week, a slight upgrade from last week’s bullish-to-neutral signals.

And with the S&P 500 Index just over 1% from its all-time high set back in February, I wouldn’t be surprised to see new all-time highs this quarter.

I do expect that the previous high will act as strong resistance, but any pullbacks will likely be contained by short-term support around 3,280.

Below that, the rising 50-day moving average should also provide some support.

I’ve said many times lately that it’s the large-cap tech stocks that are lifting the market. That holds true today, and as traders we need to go with the flow.

Right now, there is an enormous amount of money flowing into the market thanks to the Federal Reserve.

Total assets held by the Fed have fallen back slightly, but they are still just below the $7 trillion mark — up from $4.1 trillion in February.

A Weak Chart in a Bullish Market

Slack Technologies, Inc. (NYSE:WORK) is a work-at-home stock that should be participating in tech’s huge rally.

The $16 billion company operates a business technology software platform, using a software-as-a-service model, that allows coworkers to communicate online as well as share files and other data.

Daily Chart of Slack Technologies, Inc. (WORK) — Chart Source: TradingView

One would think that as more and more companies allow their employees to work from home during the pandemic that they would need a communications platform like Slack.

That has actually been the case, as the company in its June earnings report noted that it had added a record 12,000 net new paid customers. Total revenue of almost $202 million was up 50% year over year.

That sounds good on the surface, but 50% really is not a strong number when you consider that revenue growth reported in the March earnings report was 49%.

In other words, the company failed to show increasing revenue growth at a time when it should have been able to do just that.

I expect that the stock will continue to struggle, so here’s the bearish trade I recommend…

Buy to open the Slack Technologies, Inc. (WORK) Oct. 16th $27 Puts (WORK201016P00027000) at $1.90 or lower.

Remember to use a limit order when you’re entering this trade, and be sure not to overpay.

InvestorPlace advisor Ken Trester also brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.