What happens when a vehicle gets stuck on a muddy road. There is always a fear - Will it successfully cross that stretch and be on a smooth journey again or breakdown?
That's the state of S&P500.
As you can see in the chart above: S&P500 has bounced from 100 day moving average but it seems there is stiff resistance at 2455/50 dma on the upside. This is how S&P500 has behaved over last 9 days
What one need to watch out for? - Will S&P500 breakdown in this muddy stretch i.e. collapse below 100 dma OR Will it successfully cross above 2455 and start moving up smoothly again.
Science of Stock Price Action
The best learning comes from experiential learning. It is with this objective - I have developed "Science of Stock Price Action" Video Book. It's a combination of concepts and then its application in real life situations. The idea is to test how concepts work and why sometimes they don't.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
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