Stuck in a range with no clear direction seen... that's the market this morning. Something will give soon I'm sure, and might be timed around the Jobless Claims this Thursday morning on the Non-Farm Payroll report on Friday morning. A spark is need to breakout out this range, which could be up or down?
I'm still bullish here and think we'll breakout to the upside but there's not much in the charts to help confirm that line of thinking. You know the ol' saying... the trend is your friend until the end, and currently that's still up.
This month of August though is a favorite of the bears, and this uptrend is certainly looking tired. So we have to be open to either direction as possible whenever the market finally decides to make the next big move.
Larger time frame charts, like the daily, weekly and monthly, are clearly looking exhausted. But we all know they tend to push the market up to extremes before any real pullback or correction is allowed. I'm just following that typical pattern and leaning toward a break up versus a break down. I'll adjust to either one whenever support is broken or resistance. Currently the 4370 is the support zone and the all time high of 4422 is resistance of course. Whichever one breaks the move that follows should be large, like up to 4600 or down to 4200 fairly quickly. Until then we just watch and wait. Have a blessed day.