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Weekend Reading: Up Down Sideways

Submitted by Lance Roberts via RealInvestmentAdvice.com,

We seem to be stuck.

For the last couple of months, with the exception of the momentary blip to the downside, the market has spent its time within a fairly narrow trading range. For 43-days. the market traded within a 1% range before the “catastrophic plunge” (sarcasm) to support at 2125. Since then, the market has climbed, slowly, the bullish trend line into a fairly tight wedge – it’s been up, down and sideways.

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Importantly, this consolidation will resolve itself and the direction of the breakout will be fairly significant. As I wrote this past week:

“The bullish trend line remains intact and a break above the “price wedge” would suggest a sharper move higher. This makes the addition of a trading position viable with a very close stop at the current trend line.”

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But therein lies the question of the day. If the market is able to break above the current resistance levels, the technical trends suggest a move to 2400 is indeed viable. However, what is not discussed by the mainstream media, because it would be considered ‘bearish,’ is a break to the downside could be equally as painful.”

We’re stuck. The Fed is stuck and can’t raise rates because economic data keeps them sidelined. Markets are stuck as global economic growth rates are being slashed by the U.N. and the IMF as the rise in the dollar impacts corporate profit growth. 

What happens next is anyone’s guess at the moment. We’re stuck.

So, while we’re stuck, here is what I am reading this weekend.


Fed / Economy


Jobs


Markets


Interesting Reads

 


“I never hesitate to tell a man that I am bullish or bearish. In a bear market all stocks go down and in a bull market they go up.” — Jesse Livermore


Go to Source
Author: Tyler Durden




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