S&P 500 Technical Analysis
The S&P 500 was very quiet in the early hours of the day Tuesday as we are looking for some type of reason to go higher. We did get a shot higher during the session on Monday. And perhaps the fact that we went so far up in the air suggests that maybe Tuesday needs to calm down. Who knows?
But at this point in time, it’s obvious that the market is very bullish in general and therefore we are more or less going to end up being a buy on the dip type of situation. Underneath we have the $5,300, which I think still acts as a floor in the market, with $5,400 underneath also offering a bit of support as we saw on Friday of last week.
I still think we are going to look to the 5,500 level, although that’s not a real stretch from here, as we are almost there to begin with. And now, the end of the year targets are probably all going to be revised higher by most analysts, including myself. There’s really no sign of weakness in the S&P 500, and despite the fact that it’s only a handful of stocks driving the stock market higher, the reality is the momentum is to the upside and that’s the only way you can truly play this market. I have no interest in shorting this market, but I would be very interested in buying dips along the way as we continue to go much higher, it appears.
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