S&P 500 finds plenty of support at major uptrend line for the week

The S&P 500 fell during the majority the week, testing the uptrend line near the 2600 level. By bouncing the way, it has though, we had formed a bit of a hammer, which of course is a very bullish sign. If we can break above the 2700 level, that should send this market much higher as it would break above the top of the consolidation wedge that we find ourselves in. At that point, I think we continue to go towards the highs again, closer towards the 2900 level. Beyond that, then we go to the 3000 level.

Obviously, the alternate scenario is breaking down below the uptrend line, which would then open the door to the 2500 level. If we can break down below there, the market should unwind even further. My base case scenario is that we go higher though, but of course you never know what happens you have to have both scenarios laid out in front of you. I like the idea of going long in this market, but I would do so and very small bits and pieces. I would not be quick to jump in with a lot of money though, because I think that the market will be very noisy, so I would add slowly and build up a core position.

S&P 500 Video 07.05.18