S&P 500 bounces around during trading on volatile Wednesday session

The S&P 500 pulled back during the trading session on Wednesday, reaching down towards the 2560 handle, an area that was supportive previously. If we can break above the downtrend line that I have marked on the hourly chart, extensively the 2625 handle, the market should then continue to go much higher. I think that the market should then go to the 2680 level, and then eventually the 2700 level. I believe that volatility will continue to be a major issue, but with the jobs number coming out tomorrow, it’s likely that we will be reacting to that as well.

I believe that if we are turn around and break down below the 2550 level, then I think that the 2500 level should be targeted next, as it is a large consolidation area that should continue to be of importance. If we do breakout to the upside, I think that you will see a lot of fresh money come back into the market, as so much has left the market. When I do like about this chart is that we came roaring back after drifting lower. I think that the market continues to be very noisy, and I think that it will be a bit difficult to hang onto, but ultimately it looks as if we could be seeing in the market turn over a bit and try to make a run to the upside. If we were to break down below the 2500 level, that would be a very negative sign and could send the sellers into the market, selling hand over fist.

S&P 500 Video 05.04.18