Chop, Chop, CHOP
Market continues to chop its way to no where Right now the market is sitting at 1335 which is where it opened up at. In the morning the bulls started a nice run that looked like it was headed for a break of resistance. Unfortunately, the bulls quickly gave that dream up and the market began to sell back off. Bears took us down to fill the gap from this morning's open and now we have moved back up to the open.
This chop pattern has been the same for the last 4 days. The consolidation range is being established between 1328-1338, a nice 10pt spread. In choppy markets even the best patterns can quickly get taken out. The lack of volume creates for a lot of head fakes and weird moves in stocks. Over trading in a choppy market kill even the best trader. Keep trades to a minimum and wait for a market to determine a direction. In the past when we've seen a consolidation we usually get a push higher, so now we will wait and see if that comes true.
The highest probability swing trades are picked in the direction of the trend, and right now there is no trend. We've take a couple of trades here and there to test the market and each time it has been met with defeat. Will will for a higher probability play when the direction is picked. If you decide to trade, take profits quick!
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