Red lines- trading range
SPX is moving higher again today after the Non-Farm Payrolls announcement. Price is now at 3,870 but still below the upper range boundary. SPX has been trading inside this trading range since mid December. Traders need to remain patient for a break out before choosing sides. There are times to be bullish and there are times to be bearish. This is the time we need to remain patient and neutral to see which direction SPX will break out of the range. No need to take bigger risks. The market has confirmed the importance of the resistance at 3,900 and the support at 3,800. Traders better wait for a break out before opening new positions. More aggressive traders would open short close to 3,900 or long near 3,800.
