Patterns like this are popping up everywhere. I'm showing the major market averages here, but individual growth names are demonstrating identical traits.
Here is the S&P:
S&P 500 moving into resistance after a stiff rally. Contraction at resistance is a classic continuation signal. So is almost nobody thinking this can continue.
You have two camps right now: Market is going lower/Market is going sideways.
The "market is going to keep going" camp is nearly non-existent. In the meantime, price action is butting heads with the popular perception that this can't last. Price action wins in this scenario.
Next up the NDX:
Same thing with the Nasdaq. The Nasdaq 100 just plowed through resistance and followed up with a range contraction, basically coiling over the very short-term above resistance prior to its next leg.
When will that next leg come? It could be tomorrow with the jobs report. It will assuredly be by next week, barring some type of geopolitical surprise, involving missiles and violent dictators.
This market has left EVERYBODY behind. It won't relent until they believe that this is the next coming. Until they are foaming at the mouth to buy stocks.
We are long ways from that eventuality.
Enjoy the ride.
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