Much to the dismay of the many market participants, the rally has taken a bit of a breather. What seemed like clear skies above have now suddenly added some clouds. Ever since the call was made that we have entered a new bull market, stocks have largely hit the pause button on moving any higher, a curious thought when you think about it. However, there could still be hope yet.
Although the market appears to have begun the process of consolidation or even an out right move lower, this just shine a little bit of hope on where the markets could be headed next. During the course of any rally or bull market, there are some pit stops along the way that we need to look out for. While these are good for the overall prospects of moving higher, we want to avoid trying to over-trade while we are in them.
For the S&P 500, the mark to watch is going to be the 4300 mark. If we pullback to that price and hold, this could be the best spot to look for going long again. This will tilt the risk vs. reward into your favor. This level is a whole psych level and many traders may be watching the same level.
The Russell also has a level traders will want to be weary of, this one is
Watch the full video at WEALTHPOP.com
