Chart Talk {08.24.16}

The chart above highlights the very narrow range in which the S&P 500 {here shown via its ETF SPY} has settled into over the summer.  Here we have over 30 trading days or close to seven weeks now where the market has traded in less than a 1% range.  It is rare for markets to trade in such a narrow band.  Probability suggests this will resolve itself one way or another in either further upside movement or a break-down in the range.  We may receive some clues when Federal Reserve Chair Janet Yellen gives a widely anticipated speech on Friday at a Federal Reserve Symposium being held in Jackson Hole, Wyoming.  Investors will look to that speech for clues on the future directions in interest rates.  In particular they will be looking to see if there could be an increase as early as September.  Until then Wall Street is in a wait and see mode.  

As for me, and as I mentioned on Tuesday the next post here will be either Monday or Tuesday next week.

Chart is from Tradingview.com.

*Long ETFs related to the S&P 500 in client and personal accounts although positions can change at any time without notice on this blog.