I had to take care of some errands this morning. But even while watching the action though my phone it was apparent that the market is continuing its theme of increasingly violent indecision. Although it is true that the correction thus far has been limited to 3% off recent highs, looking at the daily chart for the major indices I keep noting how sloppy the pattern have become. “Such is life,” you might say if you are a bull, in the sense that you cannot expect an uptrend to stay pretty and orderly the whole time. Furthermore, picking the top of an uptrend looking out several months has its own perils, namely the continuous bear traps sprung to lure in eager shorts before the market sprints higher yet.
With this morning’s gap-down and subsequent bounce, I am watching to see if the bulls can close the week back above the 1514/1515 zone on the S&P 500 Index. That was the first level we were watching in my Weekly Strategy Session last weekend, before approaching recent 1530 highs. As I write this, I see the S&P sits at 1511. While closing the week above 1500 prevents a demoralizing weekend situation for bulls, the resistance above 1520 that we have seen forces me to tread lightly here.
