S&P500 Futures Near Range High Resistance, But No Signal. Yet.

S&P 500 update: The main stream media outlets create and capitalize on financial drama, but when you look at larger time frame chart of the broader market, there is nothing particularly dramatic going on here. This market is range bound.

Range bound markets are good at extremes because reversals are reasonable to anticipate on both sides of the market, long and short, even if it is against the bigger picture. At the moment, price is fluctuating around the range high which is the 2671 area. The level to watch is the 2692 reversal zone boundary for bearish reversals. This is where day trades or even conservative swing trade opportunities can appear on the short side.

Do not forget that the S&P is seriously affected by company earnings and with fundamentals such as the recent tax cuts entering the economy, it is important to consider how such information is likely to affect price action. This is why you must know how to form expectations that are within reason on both sides of the market.

Reasonable expectations begin with having a perspective. And this begins with evaluating larger time frame charts, and considering the fundamentals that are relevant at the moment. Make sure to visit S.C. for more insight on this market along with many others.