You know why children are unable to sit still and listen to music?

When you find yourself sitting still and listening to music as an adult, you do so because you become lost in your thoughts. The music stirs emotions, memories, and thoughts you have developed over your years of life. The music transports you through time.

As a child, one does not have the depth of experience to trigger the same emotions or thoughts when listening to music. Instead, kids focus on the present. They hear how the music sounds right this moment. These thoughts differ from what goes through the head of an adult, hence the disinterest in music.

Only once a child reaches a certain depth of experience are they capable of just sitting and listening to music while doing nothing else.

My last post ended with talk about how the current stock market is looking bullish. My prediction was correct and actually a little too tempered as price action has moved higher than I expected over the last month. My forecast predicted the market would consolidate just above or below $4,450 till the end of July, but instead the S&P currently sits just under $4,600 at $4,576.73. It is impressive how much the market has grown since last October.

As you can see in the chart above, the S&P has several lines of support to fall back upon while continuing this uptrend. MACD, PMO, and AROON are all indicating positively too. It would take a real significant world event to break this trend.

Moving forward, I expect price action to continue hitting resistance at $4,600 for a short period like we’re currently seeing. As trendlines come up to meet price, we should eventually see price action breakout above $4,600 and move higher. I don’t have a firm understanding of areas of resistance above $4,600, so that’ll be a subject to explore further.

If price action breaks below $4,500, there’s the trendline currently at $4,400 that should provide support, but after that the next support does not come till $4,250 or $4,135 as a last resort. Hopefully a retraction of that magnitude would take more time to play out than will occur before my next post.

Overall, I think the market remains healthy. People are spending money. Companies are earning money. Rich people continue to get richer. Everyone is happy. I believe there is less appetite for bullish behavior than there was one month ago, but not by a whole lot. There still remains plenty of money to put into this market to keep it going up.