Stocks are trading sideways, indicating there is indecision in the market.
Despite its macro downtrend this year, the S&P 500 (SPY stock) is retesting its $400 levels after coming down significantly to $350.
As the market sees some bounce, we’re also experiencing major barcoding, or sideways trading.
Market makers are capitalizing on supply and demand zones along with support and resistance levels.
And while day traders are also capitalizing on these swings, it’s retail investors who are stuck in the middle.
Is now the time to buy stocks?
Let’s discuss it below.
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Will SPY Break Through?
The SPY is currently in a downtrend channel.
Breaking above the $400 level could mean a strong breakout for the market.
Rejection on the channel’s trendline will result in further market decline where SPY may touch $330.
Buying the market now will play a big role in the momentum needed to break the market’s downtrend.
Our weekly MACD shows us buyers are coming in while our TTM indicator shows us decaying selling momentum, for now.
Market makers and big whales still have the final say of course.
A break above the downtrend signals a great buying opportunity.
Rejection at $400 levels will signify more downtrend for the market lies ahead.
At this point, retail investors may hold off from buying until price hit the next support trendline.
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