The market's choppiness of late has frustrated many traders. Often the divergences we are witnessing occur at key inflection points for the stock market. At present, we are battling with multiple technical resistance points--the long-term downtrend line, and the confluence of the 50% price retracement level and 50% time retracement of the market's down move. Traders must exercise extreme caution in such an environment. Until this situation resolves itself, trading will continue to frustrate many with persistent choppiness. Rather than chase opportunities, we need to be mindful of the technical patterns unfolding and await a signal from price action in order to establish a near-term bias.
