In the movie Groundhog Day, actor Bill Murray plays a weatherman, which finds himself living the same day over and over again. The 3-pack below reflects that many key markets are experiencing the same thing…resistance-
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Prices moved higher yesterday which was a positve. The 500 index, Preferred stock ETF (PFF) and Basic Materials (IYM) continue to deal with resistance. Actor Bill Murray found his life boring as the same day kept happening over and over again, which reminds me a little bit of the markets of late!
Odds are increasing that these patterns will come to an end soon, due to the intersection of support and resistance is at hand!
The key battle now boils down too….Will positive momentum (which the markets have at this time) be strong enough to get past the technical resistance. Keep in mind if momentum can push above resistance, momentum players and the technical crowd will join sides and they should push prices a good deal higher.