Below is an excerpt from this weekend analysis.
The Overall Message
The overall message from our analysis is this. We are entering key decision time, as highlighted on $SPX monthly chart at the start of this post.
Most new traders obsess about the stock market going up or going down. But statistically, the market spends more time trading in a sideway range than in a directional move.
This makes a lot of sense if we view the sideway range as decision time. Market participants rarely arrive at the same decision at the same time. It takes time, but eventually enough buyers step in and prices take off to the next level. Conversely, if enough sellers step in, prices will break down to the next level. Then the cycle starts all over again at the next level as they battle it out.
Right now, $SPX is entering into a decision zone, as shown on the monthly chart. Bears shouldn’t count on Dive2 taking off right away. And bulls shouldn’t count on Bounce2 continuing higher and higher.
SUBSCRIBE to read our full analysis and get live signal updates for $SPX $NDX $RUT SPY QQQ TQQQ. Take advantage of our introductory low rate of just $39/month. You can cancel at any time.