History Repeats for SP500 Index

I would say the stock market in general has been trading sideways moving higher and lower back and forth.  This is especially true with SP500 index.  The chart below is a 4 months view of SP500.  As you can see, it has been pretty much trading between 1040
and 1130 with few exceptions of course.

The big question is whether or not SP500 index will break its upper consolidation range of 1130.  Yesterday we saw it peak at slightly above 1131 and then immediately came back down into 1120s range.  The bulls are definitely trying hard to make a break out.  However, will they be successful?  Monday will be very important as I have a feeling that we will find out whether or not SP500 will indeed surpass famous 1130 level.  Be careful trading between 9:30am - 10am on Monday.  It is highly possible for the market to open high and then start declining after 30 minutes of trading.

I personally believe SP500 will start moving downward towards 1040 once again based on the past history.  If you also believe bears will dominate int he next month, then a good ETF to buy is FAZ especially if the market opens higher on Monday.  A good entry point for FAZ is anywhere below $13.  For those who buys FAZ must also be ready to get out of position if the market indeed makes a breakout.  Be prepared to sell immediately if you see SP500 start trading higher into 1135 - 1140 on Monday.

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