Today is a critical day in 2018-19's sideways market's short-term future. These type of sideways markets (also called "Flat Markets" or "Consolidation Patterns", etc.) usually have no direction, trend, etc. So, MIPS handles these with "Preservation of Capital" algorithms, rather than "Capital Gain" algos. In this blog, we use SPY (SP500 ETF Index) to represent "the Market".
For the SPY to go back to all time highs following a "Correction" (as in 2018), it must pass through multiple "upside resistance levels" where the market stalled on the way down. [BTW, these were called "support levels" on the way down.]
Today is what I call a "Critical Day" because the SPY is at an upside resistance level where it has "stalled" for the last five days in a row (and these attempts to cross over upside levels are not that tolerable). So, for the latest mini-rally to continue, it is very improtant that the SPY closes above its resistance level at about $259/share today or in the next few days.
See the botton right in the 2nd graph below...
COMPLETE SIDEWAYS MARKET
CRITICAL POINT TODAY
Stay tuned... MIPS had a surprise for you today... did you check your email last night or this morning?
Paul Distefano, PhD
CEO / Founder
MIPS Timing Systems, LLC