Tuesday was another do-nothing session for the S&P 500 as it finished up 0.02%, which for most of us counts as exactly where it started.
But as has been the case for a while, a market that refuses to go down will eventually go up. 4,200 resistance has transitioned to 4,200 support and the slow grind higher continues. No doubt 4,200 will soon turn into to 4,300 and even 4,400 over the next few weeks.
Bears had their chance to break this market and they failed miserably. What they couldn’t finish will soon reward those that have been giving this bull the benefit of the doubt.
There is nothing to do here but keep holding for higher prices with stops near last week’s lows.
Bitcoin was getting hammered and back near $30k support. Bounce off of this level and that is a buyable entry. But I’m not so sure bulls will get that lucky this time. Retesting the lows so soon after bouncing off of them a couple of weeks ago, especially in the middle of a well-established downtrend, is not a good sign.
We can buy this initial bounce off of $30k support, but stay near the exits because this will get ugly if it slips into the $20k’s.