🎙Is The Stock Market Going To Breakout? What WE Are Watching For...💥

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Good morning traders,

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The start of the week has been a WAIT & SEE environment. What I mean is, the action has been dull and all gap ups this week have seen to fade off the rest of the day.

What we know so far is that:

• The banking headlines did not seem to cause markets to move lower in a significant manner.

• Heck, even a 25bps rate hike couldn’t cause markets to move lower.

Obviously, the tide could shift very quickly from bullish to bearish but, as of now we are seeing the ability for the S&P 500 to hold up above $4,000 despite bad news.

Usually when the market is strong during bad headlines it is a sign of strength.

When the stock market moves higher on bad headlines, it is considered bullish because it shows resilience in the market. It means that investors are focusing on the positive aspects of the economy and the potential for growth, rather than being deterred by negative news. It also suggests that the bad news may have already been priced in, and the market is moving past it. This can lead to increased confidence among investors, which can further boost demand for stocks and drive prices higher. The point is, a market that can rise despite bad news is a positive sign of strength and optimism in the economy.

As we discussed earlier this week, the market breadth has shifted to a healthier manner from an overbought and oversold aspect and now we want confirmation on the SPY of this strong move.