Well if you are a technical trader then you are in no better shape than the fundamentalists out there as price action for the S&P 500 is anything but clear at the moment.
Failing or Holding?
That is the $100,000 question and right now it’s anyone’s guess.
Looking at the chart above you can see after price broke that strong resistance level it came back to test it and technically failed with a big body red candle taking it lower Friday.
It was followed by a day of indecision before pushing higher today, though that candle was indecisive as well with a large upper wick.
Price did close back above the resistance level so at this moment we either tested and confirmed (very messy) or we failed (also very messy).
Question is – which one?
I’m not going to make a guess as I have info that supports both arguments floating around in my head.
Personally, I don’t like betting on coin flip situations.