The stock market is making promises that should alarm investors, warns Lawrence G. McMillan. The S&P 500 Index has reached a critical juncture, with resistance at the top of its range and strong support at the bottom.
According to McMillan, two recent selloff reversals on February 3 and 25 have installed short-term support levels just below 5,920. However, this raises concerns about the index’s ability to break through key resistance areas, including the 6,100-6,140 range at the top.
Investors should be cautious of the market’s false upside breakouts, which may signal a reversal in momentum. A close watch is necessary to determine if the S&P 500 can sustain its current rally or if it’s due for a correction.
Source: https://www.marketwatch.com/story/the-stock-market-is-luring-investors-with-promises-heres-why-they-should-be-nervous-a5192aef