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Boring, But Not for Long

John Lansing reviews the range the market has been stuck in for nearly a month, but it's not likely to last


Video Transcript

Looking at the 60-minute chart of the S&P 500 futures, from the end of November, we’ve essentially been at the exact same price in a pretty tight 20-handle range for the entire month of December. I don’t even remember a range that has been so boring, for lack of a better word. But I think some of that is about to change as I expect the market to make a move down.

If we look at the 300-minute chart of the S&P 500 futures, I show you the range it’s been trading in that’s equivalent to S&P 500 ETF (NYSEARCA:SPY) the range of SPY 143 and SPY 140. In the video, I add on some Elliot Wave criteria to the chart.

I have mentioned previously that something about the pattern didn’t look complete, and it’s looking better as far as getting closer to completion where we can actually see almost a little rising wedge that occurred. It’s almost like a little fractal. The S&P futures broke south out of a rising wedge on the daily charts, then bounced to do a back test. Now, on even the shortest timeframe charts, the exact same type of pattern broke to the south and has been going nowhere in its own little back test.

We might expect the market to meander for another few sessions, but take advantage of these lulls to get positioned in trades now ahead of the next move down.

InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123.  For more information on which service is for you click here.

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