The market refuses to go down, which is causing true believers to do one or two things right now.
Either hang in there, believing that future buyers will lift price past major resistance at 2817, and then it's onward and upward from there. or the new buyers are being made to pay up and buy at 2800 resistance, because price is not dropping enough for a decent pullback, so they bite the bullet, and market order..they're in.
It's the market, and irrationality always rules.
To my eyes the pattern that's building seems to be one of forcing all of these late buyers into the top litterally.. See the rounded top sketch I have drawn on the chart.
The market will keep churning and doing that, until there is not anymore room left for anyone at these prices. It is only then that the market will decide and break one way or the other.
Kinda like watching the fresh coat of paint dry on that room where you always go. But ultimately there is going to be a price paid for familiarity and comfort at 2800.
I called the bounce early in the week but at this point the market rally is unsupported by Transportation, Russell 2,000, Mid Caps, and many others. I suspect it will fade...and this time it may finally start the descent into a lower low. Despite the FED jawboning the economic figures in the US and globally all point to a looming recession which means further downside is very likely. Perhaps next week or maybe it'll take 6 months. But a lower low is coming...possibly much lower than anyone is ready for. Good luck to all.
realColtonX
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"But for a hope and a dream, what else do we have."
As soon as I types that paraphrased quote, I suddenly thought of USD and the USD relative to the past 100 years. It's lost something like 90% of its value over a similar time period, thanks to inflation, if I am recalling the numbers correctly, and after the early 70's, has been totally make-believe. Our system runs and is ENTIRELY premised on debt. Not just 'debt,' but, ideally for the "progress" of this here system, ever higher levels of debt. Debt debt debt. The greatest example of which is National debt - just just here in the USA, but worldwide. But let's keep it simple and succinct (not my strong suit, but I am working on it...). They print money out of thin air; Fiat currency is nothing new - going back thousands of years, even to the Roman days, with the first true example of Money meeting War, the Romans used to clip their coins so that they could ultimately mint more, and when that eventually played out, they reimagined what they were doing to accomplish the permanently-fixed (to this day) goal of MORE, and simply decided, in their infinite wisdom, to merely stamp the coins with a higher numerical face value than previously, thus turning X into Y seemingly magically, no clipping necessary. Welcome, other dimensional entity... But with all otherdimensional entities, if you do the research (it's a real thing), they first greet you, tell you all the secrets, it's amazing, but in time, regardless of how long or short that time period is, the new friend(s) that you discovered on some trip eventually reveal themselves to be something else that has thousands of years of documented, if not perfectly empirical, examples of demonry, possession, or relatively simple disturbances and corruption in what is perceived to be reality.
Fast forward to present day and everything is more than ever: More debt, more money, more business, more drama, chaos, conflict, corruption, more jets, yachts, houses, people, population, problems, and at last, perhaps, solutions. Yet, allllllll of those things draw back to one thing: fiat currency. It drives everything. And whether or not it is good or bad, I'll let you decide; Whether or not it should or shall be undone is also up to you to decide. But make no mistake, it is 100% fake, imaginary, and totally like a balloon floating off into hyperspace with no tether to anything. Hence my point: If enough people believe it, believe in it, then it is "real," although I personally would qualify that by saying "the same result as if it is real (hence why it has lasted so long)."
What eyes see, and the ears hear, the mind believes. Never discount irrationality, when irrationality is the fuel for people building their little plans, constructing their little lives, and having stability. Stability in a system built on something inherently unstable. Perhaps do not look at that thing; look at the system, of which the SPX measures. Expect the unexpected!
Mystery :) Not sure if that was toungue in cheek or not.
Point and Figure analysis which is what I use to substantiate my own opinions
suggests the intermediate term would not change to bullish
unless the S+P made a new all time high above 2940.
2870 is also very important overhead resistance.
Market certainly want to cause real bear capitulation now.
CodedFlow
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You know how to best capture the market drama.
The_Unwind
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@LoLBeach,
Thank you, Mr.Canada.
CodedFlow
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@The_Unwind, Tell them - or they will ask me again about US politics. LoL
gvoommen
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I have gone long...one more minor push to the upside...with strong stop loss :)