S&P 500 goes sideways on Friday

The S&P 500 went sideways overall during the trading session on Friday, hanging about the 2660 level. The market has formed a massive hammer on the weekly chart, so I think it shows that we are ready to go higher given enough time. The 2700 level above is resistance, but if we can break above there I think we can start to pick up a lot of momentum. In the meantime, I look at short-term pullbacks as buying opportunities and value in what has been a very strong move over the last couple of days. The uptrend line underneath continues to hold the market up as well, so as long as we can stay above the 2600 level, we should be clear to buy these dips. I add slowly though, I would not build up a position immediately.

Short-term pullbacks offer small opportunities to build to a larger core position. I think that the market will ultimately go much higher, but we need a bit of calming and the yields of the 10-year notes. We have seen that a bit on Friday, so I think eventually this will catch the imagination of traders. I think that the earnings season has started out quite well for America, so I think we should continue to see plenty of reasons to rally. I anticipate that a move above 2680 will open the door to the 2700 level, which of course will offer a bit of noise, but I do think it gets broken. The overall attitude of this market shows signs of confidence returning.

S&P 500 Video 30.04.18