For those who are closely watching this market in case of a turn around or at the very least a pull back, we are getting close to the area where that has a higher probability of taking place. For example, the next big level to watch on the S&P 500 is 4300 and we just came up to that level before rejecting down, 4299.28 to be exact.
This zone has a lot of resistance overhead, which is something traders will want to look out for. While this doesn’t suggest the market will make a U-turn here, it does suggest that there will be more and more resistance ahead.
To find these levels and zones of resistance, we must first look back on history for when prices were in this area before. We can use history to show us where the pockets of supply and demand might be and then map out those zones in the process.
SPDR Gold Shares (GLD)
Whatever the reason, it isn’t much concern to us, but the fact that this buying is taking place is what we want to pay attention to. The big boys aren’t the only ones…
Watch the breakdown video at WEALTHPOP.com