The S&P 500 went sideways initially during the day, but picked up volatility as we continue to find support underneath. I believe that the market turning around at the 2420 handle, shows a significant amount of support. I believe that the market is trying to gain from here, although we are still somewhat range bound. A break to the upside should send this market towards the 2450 level above, after all it is a market that will be volatile, especially with the FOMC Meeting Minutes coming out. Ultimately beyond that though I think that the market will find buyers and that the 2450 level gets broken as we reach towards the 2500 level above. That is a large, round, psychologically significant number that of course will cause quite a bit of resistance as the market tends to favor these long-term round numbers.
Longer-term uptrend
I believe that the market is in a longer-term uptrend, so given enough time I think that it’s only a matter of time before the buyers return. Ultimately, this is a market that doesn’t hang onto losses for a very long, and with this being the case I think that it’s only a matter of time before the buyers return on drops. After all, represent value in a market that has been very strong over the longer term, and although I believe that it will take quite a bit of momentum to break above the 2500 level, we will eventually do so. It is not until we break down below the 2400 level that I would consider selling this market, as it level has been so important over the past. A breakdown below there would be extraordinarily negative and send this market much lower, perhaps breaking the overall uptrend.
S&P 500 Video 06.7.17
This article was originally posted on FX Empire