Yesterday I mentioned 7757 as the upper key level. Where did SPX close today? 7757

Today can be described as yet another failed rally, though geopolitical news is the reason behind it today rather than pure market movement. In fact, the dip from the geopolitical news was almost entirely erased and SPX closed much closer to the highs of the day than the lows.

SPX has had a pretty bullish week considering all the doom and gloom towards the end of last week. While there have been multiple failed rallies and SPX unable to ignite sustainable momentum, it has been a pretty solid grind to the upside.

SPX is up nearly 100 points on the week, with 2 days left to go. The expected move was about 165 points.

The daily chart is now beginning to extend higher. While the momentum and large candles aren’t there, it has been chugging along to the upside all of this week and it has finally broken free of Friday’s range.

Overall, I would say the market doesn’t really have a clear trend though. Last week was nothing but down and negative sentiment. This week, the market is showing some resilience and shrugging off the negativity, but it feels sluggish.

On the shorter timeframe chart, we can see that the range from last Friday was finally broken today. It took 3 days to break out of that daily candles range. SPX did snap back inside briefly due to news, but we can see the close is almost right on the penny of that red line.

We also now have a pretty strong observable uptrend from the lows last week. As long as that trendline holds, I think SPX could keep pushing higher, once again shrugging off all the doom and gloom.

The market has been faking out and fooling everyone in both directions. We saw no follow through to the down moves from last week. Can we expect follow through on the up moves from this week so far?

Overnight volatility has picked up recently and that generally means the market isn’t done correcting. A lot can happen between now and Friday. Regardless of your bias or positioning, staying small and taking quick profits is the best way to play the market until we have more clarity.

Good luck!