Who Yields This Week… Bears Or Bulls?
The week began with a nasty sell-off, but we aren’t counting technicals out just yet. This market scenario has played out before without the market falling apart. Hence, the huge rebound rally today across the market.
The overall market is a mixed bag of emotions with controversial headlines intermingled with hopes of positive Covid news and retailers looking ahead to consumer sales for the holidays. This wild market that can’t make up its mind still offers up its own set of opportunities for Simpler’s traders.
Transitions during neutral trends are challenging for investors looking for solid movement one direction or the other. As we review the indices looking for solid edges, Simpler’s traders may find it may be more opportunistic to follow sectors. In anticipation of a bearish market that has not yet materialized, our indicators are telling us that our bullish trend is waning. So far, we’re only seeing a break in the uptrend in a sideways market.
Simpler’s traders aren’t particularly interested in the “mush in the middle” — sideways chop. We are waiting for support and resistance structures to reveal themselves. We could find ourselves poised for a breakout or a downturn, so we wait for the charts and indicators to show a more clear direction.
This market environment makes disciplined adherence to technicals and signals even more crucial. We are watching signals to find setups in the morning and triggers in the afternoon. Simpler’s traders see hints of a move higher before we go much lower in the indices.
Based on market action this week, anything could happen tomorrow.