Markets Continue Grinding Higher, But Momentum Lags
Once again, the overall market trajectory has played out largely as anticipated in my recent analysis. We've seen steady upside follow-through over the past few sessions as buyers remain in control of the short-term direction.
However, while the moves have been in line with my bullish outlook, I can't help but feel a bit underwhelmed by the momentum behind these rallies. The upside impulses have lacked the robust volume and powerful breakouts I was expecting to see.
Instead, we've experienced more of a grinding, grinding type of uptrend. Prices keep inching higher, but it has been more of a slow climb rather than an impulsive driving move to new highs. The upside resolve feels a bit lacking at times.
Key Level to Watch: 66,951.81
Despite the somewhat lackluster upside momentum, the bulls remain in the driver's seat as long as we hold above the key 66,951.81 level on a closing basis. This was a major resistance area that has been flipped into support after the recent breakout.
Holding above 66,951.81 keeps the short-term path of least resistance pointed higher. A daily close below this level, however, would raise yellow flags and likely lead to a pullback.
For the uptrend to continue with conviction, it's crucial that we stay above this former consolidation resistance zone. This level looms large in the coming days as the make-or-break pivot point for the bull case.
Next Upside Targets
If the market can clear 66,951.81 decisively, the next major resistance levels come into play at 67,452 and 68,023. A push through these areas would reaffirm a continuation of the larger uptrend.
For now, the bulls remain in the driver's seat barring a bearish close below 66,951.81. However, the upside momentum has yet to be fully convinced. Let's see if buyers can muster a stronger charge in the days ahead to clear these key swing highs.
