Hey, Ross here:
The market pulled back slightly yesterday – right after coming off its fourth straight positive week.
But I’m not worried at all – because this was 100% expected.
Chart of the Day
When it comes to the major indexes, specifically the S&P 500, big levels of support and resistance are rarely blown through quickly.
The highs made in early 2023 became resistance three months later when the S&P returned to that level. It took 6 weeks of trading to consolidate, absorb the supply, and mount another rally higher.
This same level then became resistance when the market pulled back in September. What was resistance often becomes support and vice versa.
We are now again at a key level – approaching 460 on the SPY (or 4,600 for the S&P index).
This was the high of the rally that ended in late July. Anyone who gave into FOMO and bought at those highs has been underwater the rest of the year and eager to exit at breakeven.
As such, it will likely take a few weeks to digest those sellers before continuing the rally into new highs.
Insight of the Day
A shallow pullback now would be positive – not negative – for the market.
I love it when markets go up because it’s easy to make money.
But what I would like to see right now is a shallow pullback over the next several weeks.
Why?
Because this would give the market time to digest the big upward move of the past month – which could set up an even bigger run after that.
Based on yesterday’s price moves, this pullback could already be starting…
Which is why you want to get in position now – and set yourself up for maximum success when the even bigger second rally hits.
And it’s also why I’m going LIVE right now for a masterclass in using my “easy mode” strategy for positioning yourself in the highest potential stocks.
This strategy has a 92% open win rate right now, with the size of the open gains absolutely dominating the losers…
And I believe the best is yet to come.
So click here to join me in the live room now…
And let me show you how to trade smarter.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
