The S&Ps have been stuck in a 12-point trading range over the last three days. While this can present frustrating trading, the good news is that it will end shortly. When it does, we should see the market move smartly.
Both the daily and the weekly charts indicate weakness has entered the market. By these charts, we may see a move down to retest the recent lows of the last 2-3 weeks.
The 240-Minute chart shows the market in a protracted trading range for virtually the whole month of June, thus far. Although the market tried to rally higher early last week, it fell back into the larger trading range. Usually, when a market falls back into an established trading range after trying to break out, the odds favor a revisit of the trading range lows and possibly lower,
I’ve laid out the high and low of the last few days on the 240-Minute chart: 2440.00 to the upside and 2428.00 to the downside.
We’ll be watching for a move out of this range with solid price and volume action. Due to the higher time frames, my bias is to the downside, but we don’t trade mechanically. We know the important levels and watch the market action around them carefully. Should the market push down and through the 2428 level, we can expect it to run to the 2412-2410 area, and maybe lower.