S&P 500 CFD markets continue to grind sideways during Memorial Day

The S&P 500 went sideways during the session on Monday, at least in the CFD markets. However, it was Memorial Day in the United States, so it makes sense that we would do very little as the underlying index isn’t open. · FX Empire

Christopher Lewis

Updated Mon, May 28, 2018, 9:53 PM

The S&P 500 continues to grind sideways overall, as we are in consolidation, the 2700 level underneath being supportive, while the 2740 level above is resistance. Overall, I think that the market continues to go back and forth, but I do think that longer-term it’s only a matter time before we break out to the upside based upon the recent bullish pressure that we have seen. If we can break above the 2740 handle, I think the next target will be 2780. Keep in mind that geopolitical tensions are starting to calm down a bit, so I think it’s only a matter of time before the buyers step in. However, if we break down below the 2700 level, there is an uptrend line underneath that should continue to keep this market going higher. Ultimately, if we break down below the uptrend line, the market could reach down towards the 2500 level after that.

Longer-term, I believe that the market will continue to find value hunters coming in, even though it has been extraordinarily volatile. I think that longer-term traders continue to look for opportunities at lower levels, and therefore I think that we will eventually find this market reaching towards the highs again. However, the uptrend line is going to be a sign of whether we are in and uptrend line or not. I think that if we did break down below, we will more than likely go down to the 2500 level, perhaps even melt down from there.