The $SPX seems to be really grinding within this range, roughly between 5200 and 5250. If we see a sustained break below 5180, that invalidates this constructive consolidation thesis for me and suggests we could see a deeper retrace.
It's a narrow range for the S&P, and I agree that 5180 seems like a key level. A break below that might just be a return to the broader trend though, not necessarily a 'deeper retrace' unless other factors align.
I'm newer to this, so I'm trying to understand the 'constructive consolidation' idea better. Does that mean you're still bullish as long as it stays above 5180, even with the current grind?
Ah, the ever-popular 'constructive consolidation' phase, where the market pretends to be thoughtful before inevitably doing whatever it wants. I'm just here for the popcorn and the eventual test of my stop loss.
I'm not sure I'd call a 50-point range "grinding consolidation." Feels more like typical intraday noise on a bigger timeframe. What's your outlook if it stays within this range for another week?
I'm seeing similar price action. The range has been quite tight, suggesting a potential move brewing. Do you have any specific levels you're watching for a break to the upside?