The stock market can either move in time, price or both. As is evident from the charts above, the overall stock market (NYSE) hasn’t gone anywhere over last 11 months. Compressing even more since the beginning of the year. S&P 500 at Smallest Price Range in 20 Years
What does that mean?
Standard technical analysis would suggest that we are either going through a period of distribution or consolidation. They would be right right, but there is much more to it.
Think about it in the following fashion. The stock market is accumulating energy for a big move ahead. If we are to employ physics, it is identical to winding up a spring. Once released, a large amount of energy is let out at once. The exact same thing will happen in the stock market.
Once the timing is right, a tremendous amount of volatility and volume will come back. And since most investors will be fast asleep, due to today’s tight trading range, most will be caught unprepared. If you would like to find out exactly when that date is, in terms of completion of this tight trading rage, please Click Here.
