Trading ranges requires special skills and a strong mind. The contrarian approach can often be accompanied with painful p/l at support/resistance turning points.
Headline risks continue to frustrate most investors at the moment. Momentum chasers try pushing levels, only to see markets reverse again.
Despite all news, S&P 500 continues trading the range that has been in place since the October sell off.
Support at the 2625/2600 area, resistance at the 2800 level.
Dow Jones shows a similar range as the S&P 500.
Support at the 24 300 ish area, resistance at the big 26 000 level.
One of the greatest ranges we used to trade was the eBay range that lasted for 2,5 years back in 2013-2015. All ranges eventually break out, but given the right methodology, there are great opportunity, especially if you can manage your risk properly.
Source; charts by Bloomberg
