The stock market held its gains today and avoided up thrusting the 1283.50 high. That’s a plus for the market, but it was a struggle. Buyers were unable to mount much of a rally as seen by the relatively narrow range and continued light volume. The intraday charts show a market struggling to rise. That’s the bad news. The good news is sellers weren’t able to push the market down and we closed above resistance for the second day in a row.
Traders kept the stock market within the range of yesterday’s price action. We can expect activity and volatility to increase tomorrow. Odds favor a drive up. I haven’t seen supply show itself, but we are still at the critical area where the market can falter and cause an Up Thrust.
At times like these I find it best to let the market tell you what it wants to do. Lay our your levels for tomorrow (e.g., two-day high, yesterday’s low). Allow the market to test or push through one of your levels and tell you the direction it wants to take.
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