Stocks Ranging at Highs

7 Apr 2021

The S&P 500 is stubbornly clinging to highs. We saw a range day which was to be expected after blasting through highs. and establishing a point of control at about 4077. Our next target is 4144, and this comes from a Fibonacci extension. From here it could go either way. We could continue to range to solidify footing in this new price range, before breaking out higher. A retracement would also be healthy, which could take us to the 4040's, or worst case retrace the entire move back to 4009, since the move has formed a vaccum zone in this range. This seems unlikely, since there is strong momentum here as measured by the Kovach OBV. Dips should be considered buying opportunities and we may see our target reached by the end of the week.