Nearly all month, or at least since ripping off the lows, the Russell industrial average has been pinned sideways. While the NASDAQ and others enjoy gratuitous gains, the little Russell is locked into balance.
You may be asking yourself, “Why has this been happening Raul? Why won’t they set Snake Plissken free?” Listen to me, we are at the composite high volume node! This is the most traded price level going back over two years. Look:
The market likes this level. Sellers and buyers agree this is a fair price at which to exchange Russell tickets. And until a catalyst comes along we will keep trading at this level. HOWEVER, when a catalyst does come rolling in, it will cause a grandiose discovery phase to ignite.
Every trade has a buyer and a seller. When price compresses it creates boundaries. When we leave those boundaries half of the participants will be proven wrong. Their actions fuel discovery. This is auction theory 101, class is in shesh, and I am your sexy and mysterious teacher (no homo).
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