SPX 4 month Range.. When will it end? 🤔

$S&P 500(.SPX)$ has been trading in a wide range between 6700-7000 since the beginning of December. The questions many traders are asking is when will the market break out of this range and see a continuation move? Let’s dive into 3 possible scenarios the market could do going into the next couple of weeks

Scenario #1: Bearish Continuation Move

SPX ends up failing to hold 6700 and sees an aggressive move to 6666. Market tries to hold but tech continues to sell off dropping SPX to 6500 where we start to bottom out.

Scenario #2: Chop Continues

SPX retests 6700 getting bears excited again but fails to break down aggressively moving back to the 6880 level. Market tries to break higher above 6990 in the coming sessions but fails to do so. Market remains in the same range between 6750-6990 for the next 4 weeks.

Scenario #3: Bullish Tech Led Squeeze

SPX continues to hold 6750 on every retest it gets. Bears get tired and get squeezed out of shorting pushing SPX back to 6990. Tech $Invesco QQQ(QQQ)$ start to lead again with MAG7 leading the charge. The break of 7000 finally comes and a squeeze to 7150 happens within a few sessions.

As it stands the market is currently in neutral trading territory. Best way to trade this market is to approach it level by level with no bias coming in!

Market Conditions

SPX above 6990 = Bullish

SPX between 6750-6950 = Neutral

SPX under 6750 = Bearish

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