CLICK ON CHART TO ENLARGE

What do S&P 500 (SPY) bull and bears have in common? There opportunities are being limited by a tight range.

I started sharing with members several weeks ago that the patterns suggested the S&P would be in a “Chop House” environment for a while and that I doubted bulls nor bears would be that happy of campers.

In this type of an environment, unless you are really quick, nimble and accurate, its a time and place to take it easy and let this play out. For the majority of traders, the distance between the close on 8/25 at 186 and the close of 200 on 9/16 (6-7% zone), doesn’t leave lots of room to make money.

As you can see above, the S&P is near the top of this short-term zone.

Even though Wall Street plays its music every day, sometimes it can pay to not dance, just watch from the side of the room. Odds favor until this zone is broke, that if one attempts to dance, they might get their toes stepped on.