We believe the market is at a critical “pivot” point (the 18600’ish level). The talking heads on TV continue to say the market “is making new highs”. What they are not sharing is it is doing so on extremely “puny” volume.
Some time ago, we stated “volume is the fuel that propels the market”. This being the case, how much higher can we go on this “puny” volume before it just plainly “tuckers out”?
As mentioned above, there is heavy resistance at this current level and accounts for the market remaining at these levels for (21) days now. If the market “blows though” this level with increased volume, then it will continue higher, if, however, it continues to just “hang” in this area, we believe the market will turn downward to take a breather.
If this scenario unfolds, we will alert you to important support levels. Stay tuned.