Current Uptrend is almost 7 months old and you can see from the chart though market had done almost 1800+ points since Feb 2016 majority of the times markets are in consolidation phase as indicates. Too much consolidation indicates that trend is aging. Aging doesn’t mean that we are going to see a reversal. One need to understand that what phase of market we are in to take relevant trading decisions.
Aging trend indicates that trading longs has to be executed in a controlled fashion with better risk management. Also the current Jurik RSX sentiment is positive indicating that shorter term index view remains positive.
Intemediate Reference zone (Jun 2015 High) – 8667 has been continually whipsawed in the current series and so far we are in the consolidation zone 8500-8700.Breakout above 8700 could push us to the new territory possibly around 9000 zone. Where selling pressure is expected from the shorter timeframe traders