Inside The Stock Market: Keeping An Open Mind This Week [VIDEO]

Although the stock market has been a bit of a mess over the past few months, the charts are presenting a fairly clear price channel (and standard trend lines) based upon higher lows. These trend lines will guide us into “Fed week” as we could get some price movement (and noise) later this week that investors should be prepared for.

In the video below, I walk through key support levels and indicators that investors should be watching over the coming week in the stock market. I believe that price is going to be a much better indicator over the coming days than anything that tracks momentum.  In short, we already know that momentum has stalled, so price is either going to break higher or lower. Momentum will either prove to be a yellow flag, or simply follow price higher.

Although the bears have successfully stalled momentum, they still have work to do. The bulls still have two important S&P 500 support levels in play to defend. The first is last week’s lows (2039) – a close below would be a yellow flag, while the second is at 1994 (the January closing low). A close below 1994 would indicate greater risk and caution that risk exposure should be lightened.

I think the best mindset to have heading into this week is one that includes open mind. Enjoy the video below.

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Author holds positions in securities mentioned for himself and clients at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.