Narrow range

The S&P 500 has climbed just above 2500, technically breaking out above its early August highs. But this doesn’t make the market any easier to read because we remain stuck in a narrowing range. Here is the updated chart:

^SP500 (Daily) 12_8_2015 - 9_15_2017

The narrowing range, as shown by the blue lines in this chart, will inevitably be abandoned sooner or later and that will probably set the direction of trading going into 2018. We remain in a lunar green period and the LT wave for September stays positive until the end of this week. So we could see 2520 in the coming days. But the Earl is peaking out, so it looks like the stage is being set for another pullback.
I wouldn’t be too aggressive with bets either way at this point. I would just wait for the breakout from narrow range and then go along with the new trending move (up or down).

By Dan

Author of LunaticTrader and Reversal Levels method. Stock market forecasts based on proprietary indicators, seasonal patterns and moon cycles.

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