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.
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.
Based on market action this week, anything could happen tomorrow.