Technical Analysis | US Stocks Deeply Trapped in "Range Trading," But Buying Signals Remain
The current two important levels of the S&P 500 index are: support level at 4330 points and resistance level at 4540 points.
Measured by the S&P 500 index, the US stock market has entered a trading range, and volatility seems to be significantly decreasing.
The important edges of the trading range are support level at 4330 and resistance level at 4540. Both of these levels were touched in the second half of August. Breaking out of this range should bring some strong directional signals.
Since Labor Day, the volatility range of the US stock market has become narrower. Typically, late September to early October is a seasonally bearish period, but so far, the price trend has not yet reflected this.
However, internal factors in the market are more negative than the market itself.
The McClellan Volatility Band (MVB) buy signal (the green "B" on the chart) still exists. Its target point is the +4σ band, currently at 4570 points, and it is oscillating sideways.
If the S&P 500 index closes below the -4σ band, that is, slightly above 4300 points and moving sideways, then the buy signal will disappear.