S&P You can see price is approaching a key level which has been tested at least five times, the last time leading to a false break. The final break also produced the weakest attempt to push price down (possible indication bears are tiring of defending this level).
Likely, bears are placing their stops above this level expecting it to hold. The more times a level is tested, the amount of stops increase. Bulls have managed higher lows approaching another test of this level. Breakout to the upside is likely in my opinion. If this is the case, expect bulls to defend this level as resistance becomes support.
No real fundamentals to support a break higher, yet a lot of looming risk to the downside.
No desire to enter long on any breakout. I think there will be better opportunities to enter short if one's patient. Market will look to stop out as many shorts as possible before a large breakdown in price.
Likely, bears are placing their stops above this level expecting it to hold. The more times a level is tested, the amount of stops increase. Bulls have managed higher lows approaching another test of this level. Breakout to the upside is likely in my opinion. If this is the case, expect bulls to defend this level as resistance becomes support.
No real fundamentals to support a break higher, yet a lot of looming risk to the downside.
No desire to enter long on any breakout. I think there will be better opportunities to enter short if one's patient. Market will look to stop out as many shorts as possible before a large breakdown in price.