S&P 500 forming a base?

The S&P 500 went sideways with a slightly upward bend in early trading on Thursday, as the 2600 level continues to offer significant support. This is a very interesting turn of events, because the market desperately needs stability, so that it can build up confidence again. · FX Empire

Christopher Lewis

Updated Thu, Mar 29, 2018, 7:43 PM

The S&P 500 went sideways during the session on Wednesday, and Thursday wasn’t much different, with the exception of buyers jumping in to push higher ever so slightly. I believe that if we can break above the 2625 handle, the market can go towards the 2670 level initially, perhaps even higher than that. I believe that short-term pullbacks of this point continue to offer buying opportunities, with a significant amount of support down to the 2580 handle. At this point, I believe that the market should continue to find plenty of buyers if things calm down on the rhetoric side of the equation. The talk of trade wars of course has caused a lot of damage in the stock markets around the world, with the S&P 500 being a prime example. However, as things calm down and traders begin to walk away from that fearful position, I think at this point we may have some value investors jumping in.

So far, this has been a correction, although it has been rather brutal. I think that the market was completely overbought, and we are seeing the market try to find value again, and it may have found it. I believe that there is a massive amount of support extending from the 2600 level down to the 2500 level, so it is only a matter of time before the buyers jump back in and start buying in my estimation. If we were to break down below the 2500 level, that would be catastrophic.