I did a video for 12631 members discussing the weekly chart of the S&P 500 index. As you can see below, we have essentially been coming to terms with those 2011 highs (the “Bin Laden Top” at 1370 back on 05/02/11) since the middle of February of this year. Note that the attempted breakout from 1370 could not hold, and we now find ourselves paying our dues at this important level, so to speak. It is noteworthy that 1370 acted as a price magnet, even as the bulls seemed to be initially large and in charge above 1400.
We may breach this level on the downside in the same manner that we tried to conquer it a few weeks ago. However, the bigger picture is that the market is probably negotiating this crucial price area, working off both supply and demand, before it makes up its mind where it truly wants to go for a legitimate move next.
Thus, timeframes for trades should be tightened up as the short-term edges in either direction seem to have diminished for now.
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Usually right after “I can’t comment but.” there follows another question, not a reasonable comment.
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