Some serious long-term resistance overhead for this market, and that is probably going to stunt growth going forward in this market. 

That’s not me calling for a major sell-off, because I’m not. In fact as long as the Fed keeps QE4 going, this market will keep going up right along with it. However, the gains should be limited with overhead resistance still persisting to cause some headaches for price to get through. Check it out below in the chart that I’ve included.

join the swing trading splash zone


spx long term trend line

While it broke the trend-line back in December of last year to the downside, it has yet to break it again to the upside. Instead we have seen two previous sell-offs this year last about four weeks each when the old trend-line was tested. The saving grace is that the resistance level is constantly increasing its price level, since it is on an incline. What I expect to ultimately happen, is for the trend-line to mute an major or sustained moves to the upside at this point, as price is likely to be rejected each time resistance is tested. . 

But you can still keep trading this market, because with weak, weak volume, there isn’t going to be a sell-off until that volume comes in strong, and right now, we are looking at one of the weakest trading days of the year. 

Go ahead and check out the watch-list below, there are some really good and solid names in there, but don’t go chasing trades in this market, as you are better off not trading at all, rather than chase names to beyond their initial move. 

Take a look at the bullish watch-list for this week:

bullish swing trading watch list