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The S&P 500 has been trapped in a 38 point range over the last 18 trading sessions. Price continues to consolidate sub 1900, which also happens to be the 2014 yearly highs. The 1888 - 1850 zone is split almost in half with clear horizontal support @ 1865. In order for buyers to cement confidence for another leg up, 1888 will need to be taken out with conviction, retested and held. Sellers could kick-start near term momentum to the downside with a break beneath 1865, with 1850 on deck. Closes beneath 1850 expose 1810.
From a price action perspective, both sellers and buyers attempted to break the housing of a bearish mother candle printed 5/6 without any luck: on 5/7 and 5/8 respectively. Price continues to consolidate ahead of NY lunch today, adding to uncertainty and mounting breakout pressure / volatility.
It’s not easy to make money in this type of environment, so you need to be monitoring levels @ higher time-frames to ensure that you don’t get trapped in an explosive move, which appears to be looming. The index can’t trade sideways forever…
Jake Abrahams