What Levels Are Holding The Stock Market Back Right Now

Welcome back! The markets are still open right now but everything we talked about this morning before 9 a.m. CT /10 a.m. ET, continues to be the case several hours later and will continue to be the case several days later. Even since very early this morning, I was reminding people repeatedly that on the NASDAQ we have distribution above us and accumulation below us. On the Dow we have distribution above us and accumulation below. On the Russell we have distribution above us and accumulation right below us. Finally, on the S&P, we have distribution right above us and accumulation right below us. These are proven institutional levels of buying and selling. This isn’t theory. This isn’t some cutesy indicator that some guru came out with. This is real-world institutional buying and selling. What we’re having is massive amounts of money being spent to defend the markets and at the same time we’re having massive amounts of money being put in to sell the markets here. There are some big bets being played. The real key is to break out of these distribution bars or below these accumulation bars to really give these markets a chance to get going. In the meantime, we’re going to have an accumulation of what I warned you about. I told you we were entering a phase of massive volatility. You can see that the volatility has really settled in that I warned you about. We’re seeing even more evidence of that in this current environment with these distribution bars above us and accumulation bars below us. I want to make sure that everyone is well aware of these levels. You can all see those on your charts and pay very close attention that as a swing trader, you’ll expect whipsaws and volatility in those ranges. We’re going to be trading in between those levels. We want to break out and break down through those levels before we get aggressive on swing trades.

Have a great night! We’ll look forward to seeing you in the Live Trading Room or in the nightly videos.

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