Another day where the markets went nowhere. The only thing these markets are good for in my opinion, is to check your discipline as a trader. If you are anything other than a day trader, I don't think you have a good enough reason to trade these markets or to predict or speculate in which direction the market is headed next. There is no shame in being in cash as a trader and you don't have to try to catch each and every move, or in these markets, try to make something out of nothing at all.
Looking at the S&P chart below, only two things seem obvious to me: (1) strong support at 1040 levels. (2) plenty of resistance up ahead in the form of MA(50) and MA(200). We might see a bearish crossover of these moving averages sometime in the near future. That's it. That's all I can tell from the chart. Or maybe I am missing something? Free feel to chime in case you readers are seeing something that I am not. By the way, in case you were wondering, the markets are no way close to being oversold yet.
Take care and good luck!
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