Markets stagnated near the resistance levels we mentioned last week, and seem to be going down at today’s opening.
We have a few more lunar Red period days to go, but we can start looking ahead for the next Green period already.
Let’s take a look at the current chart for the Nasdaq (click for larger image):
We are still in a broad sideways pattern, and this could continue into next year.
Keep an eye on the trend lines in this chart. Sooner or later this market is going to chose a direction, and will have to break out above or below these lines that currently contain the market. A big move is then quite likely.
The upcoming Green period will favor the odds for an upside move in the coming weeks, but I don’t think we will get above 2700 already.
Uncertainty is likely to continue, and on the downside we have to watch support levels near 2500 and 2350.
I would still stay on the sidelines until we get a clearer picture.
Be well, Danny