The S&P 500 exploded to the upside on Thursday, but on Friday we went sideways as the 2820 level underneath has offered support. I think short-term pullbacks are buying opportunities, and that the 2820 level should offer support. I believe that support also shows up at the 2800 level, so this point I’m looking for a pullback to take advantage of. Overall, I don’t have any interest in shorting this market, and a pullback at this point would probably be an opportunity to go long over the short term. However, there’s also a bit of resistance above, so I think we will continue to go back and forth, and I think that the noise in this market will offer plenty of opportunities.
Overall, this is a market that I think does favor the upside, especially if we get the US dollar to calm down a bit and soften. There are signs of that in the Forex markets, as well as the precious metals markets. Because of this, it’s likely that we will see a proclivity to go to the upside, but the occasional volatile move is expected in a market like this. Short-term back and forth trading is probably going to be the best way going forward, but I would keep an upward bias overall currently.