Bulls Could Keep Winning as Slow Grind Higher Continues
2023.12.12 02:31
The finished Monday’s session 0.4% higher, putting even more distance between the index and prior resistance at 4,600.
S&P 500 Index-Daily Chart
Lucky for readers, Monday’s gains were expected. As I wrote in last Friday’s post titled, “”:
The index is not going anywhere fast, but more up than down means there is only one way to trade this. Lift stops above recent lows, and see where this takes us.
We finally broke resistance, and these things usually go a bit before stopping. Keep expectations in check, but stick with what is working.
The economy continues down the “just right” path. Not hot enough to keep inflation elevated and not weak enough to threaten employment and push us into a recession.
How much longer this “just right” lasts is anyone’s guess, but savvy traders focus on what the market is doing, not what could happen.
At this point, 4,600 resistance is no longer a barrier. Resistance often turns into support, so Monday’s confirmation further boosts the bull’s case.
The explosiveness in this move was used up weeks ago, meaning we are left with this slow grind higher.
There is nothing wrong with that. We are stuck with what the market gives us. If we want to make money, this is how we do it. And making money sure beats what the Bears are doing right now.
