After an impressive show of strength, the market has hit a wall.
From the most recent bottom, on February 8th, the S&P 500 has rallied a whopping 5%. Unfortunately, volume has continued to fall as prices advanced signaling a lack of support from professionals.
Most recently, the S&P has lost all of its steam, closing down 0.42% over the last week. Furthermore, the MACD has rolled over finalizing the loss of momentum.
The situation we face now is a market that is in a 5% wide trading range. IBD still classifies this market as “in correction” and until we see a breakout over 1115, a long position is unadvised. On the other hand, if prices fall below the 200MA, currently around 1050, we could see a major decline.
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