A sideways, or range-bound, market represents an equilibrium between buyers and sellers. I wrote a piece over at seeitmarket.com recently about the S&P 500 settling into a price range between its 50-day moving average (a common short-term trend indicator) and its 200-day moving average (a good long-term trend indicator).
Charts can provide a clear way to navigate this sort of range-bound market, helping you understand when buyers or sellers take control and push the market to new highs or lows.
You can read more over at seeitmarket.com.
RR#6,
Dave
Disclaimer: This blog is for educational purposes only, and should not be construed as financial advice. Please see the Disclaimer page for full details.