We don’t get conditions like this often. The edge has indeed fallen to those trading the intraday time frames over the last week or more. Most others have been chopped to bits.

The only support I see if we break 850 is the 750 low – I’m not seeing much Fibonacci there or any moving averages below price. A test of 750 seems certain if we break below 850… but we could find support at 850 to continue the vicious rectangle.

It’s good (from a bullish view) to see these divergences but I’m waiting for the price follow-through to show up.

Balance is a good word. Struggle. Battle. Uncertain outcome. Precipice.

You’re thinking is along with mine – a lot of people are going to be caught flat-footed – perhaps both sides (in terms of the bull trap I pointed out… and what if we get a bear trap (down move that does NOT test the November lows) then a sharp reversal up to break the November highs.

That’s the definition of maximum pain!

That’s the sense I’m getting too – this is an epic battle right now and it might pay to stand aside and wait for a clear winner to emerge.

Until then, it’s chop-city.

Incidetnally, the 850-950 range is a wide range of 100 S&P points or approx. 1000 Dow Points, BUT insidious and volatile enough to entrap both bulls and bears and hit stops with regularity.

Personally, my theory is that the final break will take place in the direction that causes maximum grief to the most. In other words, the direction of the break will be determined by the ratio of the trapped bulls versus trapped bears, while the jumps up & down, or saunters around, in the S&P 850-950 range.