S&P 500 has choppy and volatile session on Tuesday

The S&P 500 has been choppy and volatile during trading on Tuesday, initially tried to rally but then pulling back towards the 2660 level as the 10-year treasury yield hit 3%. This has been a bit of a shock to the market, and that has money flowing out of stocks. However, I think that longer-term traders will continue to look to the upside. Ultimately though, I think that the one thing you can probably count on his volatility. I believe there’s even more support below the 2600 level, so keep that in mind. If we were to rally from here, I think it’s going to take a lot of momentum to finally break above the 2700 level.

Ultimately, I do think that we will find people looking towards indices for more of a “risk on” move, but it’s going to take a bit of stability first. Because of this, I’m willing to stand on the sidelines and the short-term, or perhaps look towards lower levels for support. If we were to turn around and break above the 2700 level in the short term, that obviously would be a bullish sign, but I don’t anticipate seeing that, although we have been getting reasonably decent earnings reports out of America. I think that the market continues to be very choppy, so when you do jump in, you should do so with a small position.

S&P 500 Video 25.04.18