The S&P 500 fell during the Thursday session, dropping down to the 2410 level. The 2430 level above is resistance, and I think that were going to go back and forth as we chop around. The market looks likely to go to the upside, perhaps reaching towards 2450, but we need to see good news coming out of the jobs numbers. If they are strong, I believe that the S&P 500 will continue to gain as it is a strong economic signal. I believe that the market continues to be a choppy situation, and that should continue to be the case going forward as there are a lot of concerns when it comes to stock markets overall. I believe that a break above the 2450 level should send the market to the 2500 level after that.
The 2400 level and its importance
The 2400 level below should be supportive, and I think as long as we stay above there, the longer-term trend is probably to the upside. This could be very volatile session, as it typically is during jobs announcement. But I think that the overall market attitude is still to the upside a bit, so I do prefer going long over short, I just need to see some momentum to make that trade feasible as we have been so sideways over the last several sessions. If we do break above the 2450 handle, the market should then go to the 2500 level. A break above there is even more bullish, but it will take a significant amount of momentum building to go to the upside. Once we do break above there becomes more or less a “buy-and-hold” situation. The S&P 500 continues to attract money, and as a result I think we continue to go higher over the longer term.
S&P 500 Video 07.7.17
This article was originally posted on FX Empire