By John Pisanchik

Today the market held it’s ground and found support at the 9 day moving average. The market is still over bought, however that does not necessarily mean it will go down now. The market is vulnerable to a correction, but that has not happened yet. The trend is still up and unless something radical happens over the next day or two, will continue that way, although it will probably be slow moving. That slow grind up has a tendency to wear traders out, because when weakness starts to appear, they go short. The market slowly grinds upward, and they need to come back and unwind their positions. This is the main source of support in this market. It is also the most dangerous type of uptrend, since the quality of the buying is poor, and the trend could change in an instant. Enjoy the slow grind upwards, but remain cautious. Happy Trading.



Filed under: Market Opinions

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