Still In The Range

The market has been choppy and it has not changed much. It is still trapped in a trading range. The SP500 is still in the 1040-1130 trading range. Until it breaks out of this range, the market will continue to be choppy and favor the short term traders.

Here is the latest SP500 chart showing a newly formed bearish trendline. This trendline along with the 1040 support trendline is forming a descending wedge pattern. This descending wedge added importance to the 1040 support level. If the SP500 goes below 1040, the bears will likely hit the market hard on this break.

SP500: