The market – what can you say but, "So far, so good?"
After major benchmarks made all-time highs last fall and then fell out of bed from October through their Christmas crash, the big indexes have bounced back like bulls through a china shop.
But – and this is a big "but" – we're not all the way back.
In fact, stocks have been churning sideways since making their epic comeback, which has a lot of analysts worrying they've shot up too far too fast.
Whether or not the major market benchmarks can break out of their churn, make higher all-time highs, and support another leg up in the 10-year old bull market all depends on one thing: getting past resistance levels.
The sideways slipstream also makes stocks vulnerable to profit-taking and backing up.
Whether or not the major market indexes are safe from falling back out of bed again depends on them holding important support levels.
About the Author
Shah Gilani is Chief Financial Strategist for Money Map Press and boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker. The work he did laid the foundation for what would later become the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk and established that company's "listed" and OTC trading desks. Shah founded a second hedge fund in 1999, which he ran until 2003. Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see. On top of the free newsletter, as editor of The 10X Trader, Money Map Report and Straight Line Profits, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade using a little-known strategy. Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on FOX Business' "Varney & Co."