The S&P 500 has gone back and forth during the week, testing the 2700 level for support. I think that the market has more than enough support underneath to keep the market going higher, with the 2700 level offering a support level, and beyond that we also have support at the downtrend line as well. Overall, this is a market that should continue to go higher, but we may need to pullback to build up enough momentum to go higher. I think that the market should continue to benefit from the overall momentum as we had initially formed a couple of hammers, which of course is a very bullish sign as well.
I think the 2800 level will be targeted, and then after that we will go to the highs again. Ultimately, this is a market that I think has more than enough support underneath to keep this market alive and I think that the pullbacks will be looked at as value and I like adding the slowly so that we can build a larger position overall. I recognize that there will be the occasional significant pullback, but that’s simply a bump in a row that you need to take advantage of. It’s not until we break down below the 2500 level that I would think of shorting this market, as it would show a complete collapse of the symmetrical triangle, and of course a wiping out of major support.