Another boring range-bound day of trading again as the struggle for market supremacy between the bulls and bears wages on! However in the midst of the boredom, there are a couple of things worth noting: 1) both the Nasdaq and S&P managed to hold meaningful trend lines – more so with the S&P 2) there was a clear buy the dip heading into the close, which could indicate that bulls are once again getting interested, and 3) no matter how perfect the opportunity has been lately for the bears to just completely destroy this 10-month rally, there is just no push through by any means to take this market significantly lower. Instead all the selling, and while it seems “significant” on an intraday basis at times, isn’t causing any wreckage on the daily charts.
Here’s the Nasdaq and S&P Charts…
The dotted lines below on the Nasdaq show a bearish wedge forming, but this could go on for another month, OR the bulls could just break through the resistance level on top and make the whole pattern completely mute.
Long-term trend-line on the S&P is still in place and was flirting with a potential breakdown earlier this morning, but the bulls managed to prevail by the end of the day. Current pricing on the S&P provides a low-risk/high-reward setup right here.