We’re still in the testing phase on the 50-Day and, in reality, have been since December. What does this mean? Consolidation. The market is in a choppy period, so it’s important to avoid overtrading. While that can be frustrating, there’s also a silver lining.

During consolidation, the 200-Day Moving Average tightens, bringing it closer to our signal. This strengthens support and allows for quicker reactions to dips. Sometimes, moving sideways is necessary to maintain a healthy market and stay on track.