The Market Is Transitioning – Adapt

The momentum during the last few months is waning and a horizontal range is likely.

PRE-OPEN MARKET COMMENTS MONDAY – If you watched the video I recorded last night, you know my market opinion. This is a major technical support level with significant trendlines and SMAs coming into play. The price action in the last few months has been very choppy without much in the way of momentum. The recent decline has not stacked any “reds” and I don’t believe it has the power to breach significant support. I am neutral to slightly bullish just because we’ve spent more than a month above these technical levels and that is a sign of support. This has not been a poke above them and then a fail a few days later. Last year we spent  most of the year below them and they served as resistance. That is a sign that the down trend is transitioning into more of a horizontal range and that is part of the bottoming process.

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