The main range is $3886.46 to $5602.23. The major support is the 50% to 61.8% retracement zone at $4744.34 to $4541.88. The market has been trading inside this zone throughout April, indicating trader indecision.
The short-term range is $4099.12 to $4891.54. Its retracement zone at $4495.33 to $4401.84 is another minor support area.
The intermediate range is $5602.23 to $4099.12. Its retracement zone at $4850.68 to $5028.04 is resistance. It stopped the rally at $4891.54 on April 17.
For those following the moving averages, the intermediate 50-day moving average is providing resistance at $4821.62 and the 200-day moving average is major support at $4282.43.
Putting it all together, I see a compressed market that just isn’t ready to move in a major way in either direction yet. While it remains in this range, traders are likely to continue to sell rallies and buy dips because there just doesn’t seem to be the volatility and volume to sustain a move at this time.
It’s a normal reaction, however, to last year’s steep rally. And history has shown us that markets usually trend about 30% of the time and move sideways 70% of the time. All you can do is control your risk. Everyone likes the fast-moving market, highlighted by traders taking out offers during rallies and hitting bids during sell-offs.
