Tuesday was another do-nothing session for the S&P 500 as it finished up 0.02%, which for most of us counts as exactly where it started.
But as has been the case for a while, a market that refuses to go down will eventually go up. 4,200 resistance has transitioned to 4,200 support and the slow grind higher continues. No doubt 4,200 will soon turn into to 4,300 and even 4,400 over the next few weeks.
Bears had their chance to break this market and they failed miserably. What they couldn’t finish will soon reward those that have been giving this bull the benefit of doubt.
There is nothing to do here but keep holding for higher prices with stops near last week’s lows.
Bitcoin is getting hammered and back near $30k support. Bounce off of this level and that is a buyable entry. But I’m not so sure bulls will get that lucky this time. Retesting the lows so soon after bouncing off of them a couple of weeks ago, especially in the middle of a well-established downtrend, is not a good sign.
We can buy this initial bounce off of $30k support, but stay near the exits because this will get ugly if it slips into the $20k’s.
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Jani Ziedins (pronounced Ya-nee) is a full-time investor and financial analyst that has successfully traded stocks and options for nearly three decades. He has an undergraduate engineering degree from the Colorado School of Mines and two graduate business degrees from the University of Colorado Denver. His prior professional experience includes engineering at Fortune 500 companies, small business consulting, and managing investment real estate. He is now fortunate enough to trade full-time from home, affording him the luxury of spending extra time with his wife and two children.