Market update

Above is a chart of the current market (I usually refer to the S&P 500 when I talk about the market, as compared to the DOW or Nasdaq or Russell or ...).

Look toward the middle of the chart at the lowest prices and you'll see all those white bullish candles that put us into the general area where we are trading currently. There's just no way the market could have continued at that drastic pace, so it took a breath and just traded sideways for awhile. This was very healthy because it gave both the buyers and sellers time to trade back and forth at this level and to basically accept the value of the market at that level.

The purple horizontal lines represent the multiple levels of support/resistance. We are now coming up to a resistance level. Remember what "resistance" actually is: it's simply a price area where there's a bunch of people who believe that the price is a good area to sell and take profits.

Looking at that highest resistance line on the chart you'll see that we spent quite a few days up at that level. There were tons of sellers and the buyers simply couldn't overpower the sellers to get the price to go higher and break through that resistance level. So, the buyers took a breather and let the prices fall back down. Buyers then came back in because the price was nice and low, in their opinion, and they started aggressively buying again and thus driving up the price.

Now we are back up to that resistance level again. So, I imagine that we'll either stall out a little and move sideways for a couple of days and then break up through that resistance OR we'll go back down again, but this time not as far down as last time and then we'll go up and try to break through that resistance again.

Sometimes news will give the market enough of a boost to get through those resistance levels. So, we'll have to see what happens from here.