Earnings appeared to be a mixed bag of positive and negative. However, they did not manage to shake the market. Experts predict the market to remain flat until there is big news that either supports or collapses the market. A range-bound strategy may be your best chance right now if you are a short-term trader.
The market may continue to be choppy. Therefore it is best to keep your position size minimal in order to avoid major losses. Capital preservation is critical in this case. If an earnings report frightens the market, you could quickly find yourself on the losing end of a trade.
Furthermore, traders expect key PMI statistics on Friday. The results will drastically affect market activity. As a result, the market is likely to remain reasonably turbulent. Investors expect relative quietness until the release of additional economic data.
Finally, it is worth noting that the market is at the top of a larger chart range. As a result, while there is room for growth, there is also the risk of a negative trend. Therefore, it is critical to use caution when investing in the market.
The market’s upward trend continues
The market’s upward trend continues, but its direction is unknown. It may remain in a limited range for some time. To avoid substantial losses, investors must maintain a careful eye on market behavior and exercise caution. After all, numerous earnings calls could produce a problem in this market in the future.
The S&P 500 index fell slightly during Wednesday’s trading session. Furthermore, the market maintained its positive position.
However, because of the absence of direction, the market may swing within a narrow range.
Short-term support is provided by the 4100 level below. On the other hand, short-term resistance may appear at the 4200 levels above. The earnings season is currently underway and plays a significant part in predicting the market’s next moves.
Before the investors put any money to work, it would be more reasonable to wait for the market to break out. Rates above or below the 4200 level would be more helpful for earning large gains. However, for short-term traders, a range-bound method could work well nonetheless.
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