The S&P 500 rallied a bit during the trading session on Monday, as we reached towards the 2900 level. That’s an area that of course will attract a lot of attention, but at the end of the day it’s only a round number, and not one that I think will hold the market back. We will probably pull back from here, reaching down to the 2880 handle. But that should only be a buying opportunity. Alternately, if we break above the 2900 level, then I think the market should go to the 3000 handle. The 3000 handle will attract significant attention and will probably be difficult to break through initially. That has been my longer-term target for some time, and I remain convinced that we are going to try to get there.
I think there are support levels at the 2880 handle, the 2860 handle, and then eventually the 2800 level. Corporate profits continue to look healthy, and therefore will continue to push the S&P 500 higher over the longer-term. Overall, I think that the market participants continue to show a proclivity to go higher, so there’s no need in fighting this market. This uptrend is very strong, so there’s no need to fight or try to get cute with your trading positions. I simply look for value in the S&P 500 to continue going higher, continuing the move to the big figure.