S&P stalls in indecision; still bullish

Last week was marked with indecision. Market was moving in a narrow range while Buyers were waiting for FOMC ad NVDIA’s earnings. After receiving positive confirmation (FOMC neutral, earnings good) market tried to go higher but found no support from large players. Sellers took advantage of the weakness and dropped price, clearing many weak longs established in the previous 5 days. It was a strong move but for some reason sellers lacked conviction to go lower. Price pivoted after filling the gap from Wednesday 15th and went back into the balance zone (527.5-531.5).

We should expect more pushes and pulls in the short term while market is fishing for new information. To confirm their control buyers must clear last week high (533) and build value above it. Bears’ objective is to break last week low (525). Until it happens the most likely scenario is bracketing within last week range.
It is important to note that while short term direction is unclear, we are still in weekly uptrend. So bears must work twice hard to prove their strength

Disclaimer
I don't give trading or investing advice, just sharing my thoughts.

Comment:

Sellers came very close today to gaining control over the market. Once the price formed a double top on the hourly chart, sellers initiated a sell-off. This looked very convincing as all major sectors were hitting their lows of the day. I was sure they would easily break Friday's low, but surprisingly, it didn't happen. At the last moment, the price found support and pivoted.

This is a strong signal for bulls, and I would expect the market to gap up tomorrow. At the same time, I'm still sticking with my initial thesis.

Comment:

The price gapped down, and although buyers attempted to bring it back into the previous day's range, they failed. The market is now falling in after-hours trading. The most confusing aspect is why sellers didn't act during regular trading hours. Are they not strong enough?

In any case, if the market opens tomorrow below 525 and doesn't immediately return to the previous trading range, this will signal the start of weekly consolidation.

Comment:

Weekly consolidation has started. As price is still in a monthly uptrend we should expect it to set weekly higher low. There is no way to guess when it will happen but levels to watch are 520-521, 515-516 and 500.