Who pressed the pause button on world wide stock market indexes? Some have hit price resistance and are either in a distribution or accumulation phase where buyers and sellers are doing battle at the front lines. Pretty typical summer price action I would say.
All open positions still look good…continue to hold. As an example please note SPY…
SPDR’s S&P 500 Trust Series ETF (SPY) weekly
Price has been trading, for the most part, inside the channel formed by the two parallel upwards sloping white trend lines since the bottom in 2009.
Current price is at the top of the channel. If we are going to get a summer pull back this is where it will likely begin…somewhere along this rising resistance level.
Remember, price can ride this upwards resistance level for a long time as it did from late 2013 to late 2015.
I think for now the best course of action would be to hold all open positions and not put any new trades on until the markets provide better opportunities.
Sorry, no new trades this week. I don’t create the opportunities, the market does. I just try and identify and explain them.
I wonder if they call this time of year “the winter doldrums” in Australia? Would any of our Aussie subscribers care to answer this query?
I do answer all questions/comments. I love any discussion about the markets. Even though I have been doing this for 35 years there is never a reason to stop learning. I learn more every year.
Send me your comments/questions and let’s learn together. I’m sure some of you have trading experiences, ideas, frustration or fears. Your comments/questions/discussions can likely help every one of us.
It’s summer…go take a nap…or
Don’t be bashful…email me… don@smartchartinvestor.com
Trade Smart,
Don