Early Christmas Present for the Bulls?
- After its recovery from COVID-19, S&P became range bound for two months, with both bulls and bears not having enough strength to buy up / sell down the market with bulls taking profits near 3600 levels where bears shorted forming a resistance, and bears taking profits at 3250 levels where bulls went long forming support.
- In November however, S&P started drifting higher past resistance, ignoring what seemed to be a strong rejection of an initial break out to the up side on 9-Nov. This could have been driven by positive news around vaccines and hopes of a recovering global economy.
- That said, the upward drift does not demonstrate much conviction from the bulls as it is made up of green bars interlaced with red bars with low volume, more typical of a ranging or consolidating market. Perhaps the holiday seasons are here and the bears have gone to do their last minute shopping, lifting the lid for prices to continue drifting higher.
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