For the last two months now, the S&P 500 has been trading in a well defined upward trading range with a series of higher highs and higher lows. Unlike each of the prior times when the index approached the upper end of its range and quickly pulled back, the most recent test to the upper end of the range has lasted considerably longer. In fact, the S&P 500 has been straddling the upper end of this trading range for close to two weeks now!
This increasingly tight range that the index has been trading in suggests that the market may be gearing up for a big move in either direction. The only question now is which way. Will the S&P 500 fail at the upper end of its range, or will the index finally make a convincing breakout to the upside?
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