Huge Wall of Resistance Ahead for Stocks
The market is rallying back toward major resistance levels, with many new short-term buy signals appearing. However, key indexes remain stuck at their 200-day moving averages, creating a significant wall of overhead resistance. Traders are encouraged to cover short positions and cautiously scale into new positions rather than going all-in before a confirmed breakout.
U.S. sectors are broadly back on buy signals, while the Canadian market continues to show stronger momentum after bouncing from support. The VIX is on sell signals but needs to drop below 20 to turn strongly bullish. Commodities show mixed action, with strength in crude oil and copper, while gold and silver could be vulnerable to trend changes.
Stephen Whiteside
Tuesday, April 7, 2026
