The S&P 500 has gone sideways during most of the session on Monday, as we continue to see a lack of motivation. However, I think that there is support underneath that should keep this market afloat. I believe that there is a major uptrend line underneath it will also attract a lot of attention, so it is going to be a situation where buyers are looking for value, and that pullbacks towards the uptrend line near the 2600 level should continue to find plenty of buyers underneath. If we did breakdown below the 2600 level, the market could break down towards the 2500 level, an area that I look at as the bottom of the uptrend. Until that happens, I look at pullbacks as potential buying opportunities overall, and recognize that the reasonable earnings season should continue to give this market plenty of reason to go higher, but on a day where the US dollar had strengthened, it was going to be very difficult to continue the uptrend that we had seen.
The last couple of days have been a bit negative, but not necessarily something that has me overly concerned. This is a simple pullback in a larger uptrend that has recently seen a lot of volatility. This makes sense, as the market may have gotten ahead of itself longer term. Although things have been very difficult, we still have buyers underneath.