Ranging Market – Pause or Reversal?
- The S&P500 has been in a relentless uptrend and a “buy-the-dip” strategy would have proven a profitable one as markets continue to be propped up by government injection in various forms. However more and more, the question has emerged – is everything in a bubble?
- More recently over the past 2 weeks the market has evolved into a ranging one, between 3883-3962, signaling some balance of buying and selling. However, this could be due to the cold snap in the US which could be affecting the trading volumes where traders focus on keeping warm.
- Coming into the next week as temperature normalizes we may see continued buying, but in the meantime a buy low sell high range trading strategy may work well until we see strong momentum to the upside.
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