Here's S&P500 over period of 2 years now
Locked in a range between 1820 and 2120.
There are three simple observations one can make:
1. S&P500 has failed to cross over above 2120 despite making many attempts
2. S&P500 has always found solid bullish support near 1820 - it means solid bounce from there
3. The tendency is to BUY THE DIPS.
This is what S&P500 did today
US market has frustrated both bulls & bears over the last year with the index unable to break out and sustain a path in either direction. The market is a forward looking mechanism. Expectations are priced into markets and Surprises reprice markets. The market is waiting for next big surprise and that can only come through Corporate earnings
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers