In This Article:
The S&P 500 when sideways initially during the day on Thursday but then rallied a bit to show signs of life again. We are positive, but it’s not some type of major move, rather it is an attempt to break out to the upside and above the most recent high at the 2740 handle. Short-term pullbacks continue to be buying opportunities, and I believe that the 2700 level should now offer a bit of a short-term floor. However, even if we break down below there, the downtrend line from the symmetrical triangle could also offer plenty of support, somewhere near the 2650 handle.
The alternate scenario of course is that we break out to the upside and go looking towards 3000, which is my longer-term target. In the meantime, I break higher and above the 2740 level sends this market looking towards the 2800 level which is by short-term target. Volatility continues to be very difficult, and I think that this choppiness will be a major problem when dealing with this market. Ultimately, this is a market that you are going to need to be very cautious with but can add if the market moves in your favor and breaks out again to the upside. I have no interest in shorting, at least not anytime soon, as there is plenty of upward pressure that we have seen over the last couple of weeks. That’s not to say that we won’t fall, just that I would be very cautious about putting money in that direction. Upon confusion, sometimes is best to stay on the sidelines.
S&P 500 Video 18.05.18
This article was originally posted on FX Empire