A Chart On A Rainy Saturday Morning.

It's rolling rain here in Chicagoland this morning.  I'm a little bored so I thought I'd put up a bonus weekend post seeing as how all of us here are stuck inside for the time being.

What is posted above is a chart of the S&P 500 ETF {SPY}.  The chart is from Tradingview.com although it's annotations are mine.  What we're seeing is a index firmly stuck in a trading range, albeit trending towards the upper zone of where it's traded since this zone of congestion was established back in the winter.  So far the market continues to play into the thesis we've been talking about since February of being stuck in a trading range.  If that thesis is correct than the market should start to encounter more resistance as it approaches the upper level of the range.  Market is also oversold on a shorter term basis right now so I wouldn't be surprised if we see some profit taking at some point in the weeks ahead.  

Call the range on the SPY right now roughly between 258-285 on the index.  Don't treat these numbers as something set in stone but rather should be used as a frame of reference.  Markets can and probability suggests likely will at some point exceed these levels before falling back into the zone.  A decisive breakout from these levels would indicate a change of trend in the markets but we're not there yet.  

Back Tuesday.

*Long ETFs related to the S&P 500 in client and personal accounts.  Short S&P 500 in a personal account as part of a separate individual strategy.