July Range Could Signal Major Market Reversal
2023.07.19 04:02
After such a bullish first half of the year, it’s natural to feel like it’s time for a bearish correction, but when?
July gives us reliable price levels that can be used to anticipate inflection points that will serve as places to look for major market reversals and breakouts.
The big July Range has just been defined, and this year its low should be a focal point for any trader looking to stay bullish “until the market rolls over.”
If you’d looked at the market from this perspective in 2022 only in reverse – bullish over the July high, it could have served you well, as demonstrated by the charts below.
Of course, there’s a bullish side of this range too, and you don’t need to wait until the July low to lock in profits or get defensive. Trade the range line.
Additionally, if you look at the charts closely, you’ll also see that January has its own big calendar range. July alone or with January’s perspective, they’re simple and very insightful if you simply “trade the line.”
They’re even more powerful when you look for confirmation across multiple markets. For stocks, this means looking at SPDR® S&P 500 (NYSE:), SPDR® ETF Trust (NYSE:), Invesco QQQ Trust (NASDAQ:), and iShares ETF (NYSE:) together.
This year (as you’ll see in the report below), it would also be wise to watch the iShares 20+ Year Treasury Bond ETF (NASDAQ:) and SPY together.
