If TSLA declines with the Weekly Slow stochastic at least near oversold and a high short interest relative to the

Since early 2015 the US stock market has been struggling to make marginal gains.

Viewed strictly from the perspective of technical analysis there have been many bearish signals.  Momentum indicators on the S&P 500 (SPX) specifically the RSI have been showing bearish divergences.  Stocks making 52 week highs had a significant bearish divergence when the SPX made its high on May 20th 2015.

June through October is a seasonally bearish time for stocks.  Probabilities favor at least a correction of 10% which may have already started.

Is this a time to be buying stocks?  Absolutely not!  If the stock market is in a correction the vast majority of stocks will decline with the broader market.  It is however a great time to be watching for stocks that could decline the least relative to the market.

One stock that needs to be watched closely is Tesla Motors (TSLA)

Fundamentals and Technical Situation

TSLA designs, develops, manufactures and sells electric vehicles.  They also make  stationary energy storage systems.  Since its founding in 2003 TSLA has earned a profit in just one three month period.  In 2014 they lost $294 million on $3.2 billion revenue. Worst of all TSLA doesn’t expect to earn a full year profit until 2020. The technical outlook, at least from one possible price pattern is very bearish.

Please see the weekly TSLA chart from March 1, 2013 to June 5, 2015.