The S&P 500 has rallied a bit during the trading session on Thursday, and with Good Friday being celebrated, there was no movement then. I believe that the market rally in the way it had on Thursday shows that we do have a significant amount of support around the 2600 level, and I think at that point you should look at this market level as a potential short-term “floor” in the market, but I would also be remiss if I didn’t point out that the weekly candle to get back some of the gains. Because of this, I think that the market will go back and forth and continue to chop going forward. However, if we break down below the 2590 level, I think the market will probably unwind as low as 2500 before finding massive support there as well.
I am a buyer in general, but I also recognize that there is a certain amount of anxiety in the markets due to the potential trade wars and the like. I think that LIBOR spreads are starting to make some people nervous, so there are certainly some gremlins to worry about in the markets overall. However, I think that given enough time we should continue to see buyers jump into this market, unless something blows up in those areas. If we get some type of agreement with trade diplomacy, that could be reason enough to send the S&P 500 higher again. I like buying dips as a set, but I also like buying a fresh, new high, somewhere near the 2660 level.