If we look at the S&P 500 yearly charts, we can see price is around the highs of last year and earlier this year. This will always be considered a sticking point for price due to reversal levels and congestion from the past.
If you were on yesterdays webinar, you will know we have been in a resting phase of the market and also the reason why we are in that phase. We need to wait for the market to pick up once again.
That means, we can take positions if they are AT or FROM support but breakouts at this moment are likely to have less reliability for stocks, especially small-cap. So standing aside and waiting for high probability opportunities and buying AT or FROM will be the order of play.
Right now is when the average trader has suffered enough and wants in on this trend, having not been involved or maybe even trading against it during the uptrend. If that is the case, watch out for greater noise levels.
So, the trends are likely to continue longer-term if price can break through this sticky zone and we can buy into this market but we will all have to navigate around the noise.
Let’s go trade!