S&P 500 continues to push ever so slightly higher

The S&P 500 rally during the trading session on Monday and, reaching towards the 2740 handle, an area that is resistance as we have seen just a few days ago. By looking at this market the way it has gone over the last couple of days, I suspect that there will be buyers jumping into this market sooner, rather than later. · FX Empire

Christopher Lewis

Updated Mon, May 21, 2018, 10:03 PM

The S&P 500 has rallied a bit during the trading session on Monday, reaching towards the 2740 handle, an area that has offered resistance as of late. However, I think that we will eventually break above this resistance barrier, as the tensions between the United States and China have calmed down a bit, perhaps giving us the next reason to go higher in the stock market. There have also been $28 billion in mergers during the last couple of days, so that has helped the S&P 500 as well.

Technically speaking, the 2700 level underneath should offer support, as we have pulled back a bit during the session. I think we eventually break out, but if we were to break down below the 2700 level, that could unwind this market a bit. Longer-term, the S&P 500 is much more volatile as of late that it has been, but that simply offers more trading opportunities for those who are willing to pay attention to the most significant levels. Some of those levels include 2700, 2650, 2630, and 2600. Longer-term, I still believe that this market could go to the 3000 handle, but it is going to take a significant amount of effort to get there, so therefore I think we will continue to see short-term pullbacks. As things stand right now, I don’t have any interest in shorting, but I am watching the volatility with great caution.