Stocks are tending toward the upper bound of the value area, forming what appears to be a bull wedge. We have been flirting with higher levels in the 4000's established from a value area formed back in June. We seem to have a hard upper bound at 4178, but the Kovach OBV is still strong, suggesting that we have a bull divergence. If we break out, then 4188 will provide resistance. If we can break through that, then 4214 is the next target. We should have support from 4122, then there is a vacuum zone to 4068. If that does not hold, we should have strong support at 4009.
Nice call on BOTH the hard upper bound hit before open, and the support level, hit before close. A bit choppy. I thought that the market would continue to second guess the Fed, not believing they will hold the course into an election. Biden's bill might have played a role too? Not sure that news has a huge role beyond a week?
quantguy
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@Bill_Howell, the markets are not easily fooled by propaganda...