Hey, Ross here:

If you’ve seen me break down price action before, you know I like to look for consolidation patterns after uptrends.

This is where after a stock has run up significantly…

It consolidates – often in a classic “shallowing” pattern – for a time as markets digest the move.

Only once this move has been fully digested can the stock break higher after.

For today, let’s look at a major consolidation pattern that’s formed – in the most-watched stock index of all time.

Chart of the Day

This is the S&P 500, which is still trading below its end-October highs.

Those highs have formed a clear resistance level, which the index attempted to break (but failed to) around Christmas.

To some that may be a negative sign.

But if you look at the chart above, you can see that each dip – including the one over the past few trading days – has been following a classic shallowing pattern of “higher lows”.

That’s a classic shallowing pattern – and exactly what we want to see.

And here’s another interesting data point.

If you look at the closing price for the S&P 500 in end-October, end-November, and end-December…

You’ll find that they’re all within 1% of each other (I’ve highlighted it on the chart below).

And historically, when that happens – it’s usually a positive sign for the markets.

Source: @SubuTrade via X

Combine this with the shallowing pattern I just showed you above…

And I like what I’m seeing in the markets right now.

Plus, remember that the shallowing/consolidation pattern you just saw was in the index…

Something that has very important implications for traders.

I explain below.

Insight of the Day

If the market is on the verge of breaking out, the leading stocks and sectors already are.

Remember, the market is just a broad aggregation of individual stocks.

If the market is about to break out…

Then it means that the leading stocks already are.

That’s what we want to be targeting right now.

If you recall, I showed you this in yesterday’s newsletter.

These are industries that are already breaking out…

And that’s where a lot of my focus is – and where yours should be – right now.

Of course, most traders have no clue what these leading sectors are…

And they miss out on these opportunities as a result.

As a paying member with access to these Industry Strength Indicators, this won’t happen to you.

But if you want to go deeper…

To dive deeper to find the most lucrative opportunities in the market…

The ones that have delivered gains as high as 1,787% – and as a fast as 148% in 2 days…

Then make sure you show up for my LIVE members-only event happening later this morning at 11 a.m. Eastern.

This event is free for members like yourself…

And I’ll be showing you all my “inner circle” strategies I use to go after the biggest underground opportunities.

Don’t miss it.

Click here to lock in your free spot if you haven’t already…

And I’ll see you in just a bit at 11 a.m. ET.

iOS: https://apps.apple.com/us/app/goto/id1465614785 

Android: https://play.google.com/store/search?q=goto&c=apps

Customer Story of the Day

"By FAR !! the best way to understand the workings in the stock market. Ross and the team are the real deal, no BS.  

I'm a lifetime full subscription member and couldn't be more satisfied."

Embrace the surge,

Ross Givens

Editor, Stock Surge Daily