Two weeks back I wrote about the S&P 500  Missile Launching and Bunker Building.  Not much has changed since then or has it?  Let’s have a look:

DAILY S&P Chart on May 29:

DAILY S&P Chart today:

Two changes to note here:

1.  The S&P has cleared the 200 TANK resistance (along with the DOW).  The NASDAQ     cleared this resistance May 26. 

2.  The S&P has cleared the tight channel and the strong upward price resistance and has now formed another multi-day channel (see the aqua blue box). 

WEEKLY S&P Chart:

The WEEKLY chart, however,  is now nearing strong resistance at 50 TANKS (the top aqua blue line on the DAILY chart) along with the DOW.  The NASDAQ again is in the lead having cleared its 50 TANKS last week. 

QUESTIONS:

Will the resistance on the WEEKLY chart keep the indices in check as we enter the traditionally weak to neutral summer months?  Or will the S&P and the DOW find the strength to join the NASDAQ and push further past resistance?  There is always the possibility of a summer rally!

For me, we have nothing more than a stock picker’s market as we wait for the next move one way or the other.  Here is what I see:

1.  Entangling Ground

2.  Sniper Trading

3.  Patience Building

4. Focus on High Probability Trading

5.  Keep Trading Simple Especially During Choppy Markets

Post from: The CrossHairs Trader

THE STOCK MARKET IS WAITING. AND YOU?

Related posts:

1. UNDERSTANDING STOCK MARKET MOVING AVERAGES WITH THE CROSSHAIRS TRADER and FORREST GUMP
2. STOCK TRADING AHEAD OF MEMORIAL DAY: THE NUMBERS IN THE CROSSHAIRS
3. S&P 500 AND THE NEXT BIG MOVE: MISSILE LAUNCH OR BUNKER BUILDING?

Last 5 posts by David Blair

• THE THINKING TRADER 11/20/2009 - November 19th, 2009
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• THE THINKING TRADER 11/13/2009 - November 13th, 2009
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• THE ART OF TRADING VERSUS THE ART OF DECEPTION - November 10th, 2009