We got some follow through after we broke upwards out of the 5 week trading range one week ago. We began the week retesting that previous resistance level followed by a surge of upward price action until we ran into all time high resistance. After a big run into this level, it only makes sense to look for a healthy pullback or sideways consolidation the early part of the week. The big clue telling me this is the IWM having a massive move from the bottom of its 2019 range to the top, and pretty much coming to a halt as soon as it touched resistance. I would expect this one to stay in the range at least a few days following that move.
We have a Huge Fed meeting this week, where they release their decision whether or not to cut rates further Wednesday at 2pm Eastern. The market really wants to see another rate cut of 0.25 basis points. The reaction to this meeting will dictate the market action later in the week.