The S&P 500 continues to be very choppy, but more stagnant than anything else. Ultimately, it looks as if the 2675 level is going to offer support, and I think that a bounce from that area makes a lot of sense. If we get that, I’m willing to buy that bounce and aim for the 2685 handle. Between now and the New Year’s holiday, to be difficult to get overly excited about the market, so even if we break down below the 2675 level, I think we will find buyers given enough time. Above the current trading action, the 2700 level looms. If we can break above there, and extends the longer-term uptrend much further, and I believe that is eventually what will happen.
However, in the meantime I think there is a serious lack of volume that is going to prevent that, and is probably not until we get through the first couple of days in January before breaking out. In the meantime, I have to look at this is a market that is to be traded back and forth in short increments. I do favor the upside though, and I think that the short-term pullbacks give us an opportunity to pick up little bits of profit. I would keep my position size relatively small though, because the lack of volume can cause significant and erratic movement in the underlying futures markets.
S&P 500 Video 28.12.17
This article was originally posted on FX Empire