The S&P 500 has rallied significantly during the week, reaching towards the 2790 region. I think that the market continues to find plenty of reasons to go long, as the tax bill being signed recently has put a lot of optimism into this market place, and of course corporate profits extending should continue to be a reason to go much higher, and I think that the S&P 500 will eventually look towards the 3000 level sometime this year. The 2700 level underneath is massive support and essentially the short-term floor.
I think that if we break down believe the 2700 level, the market probably reaches down to the 2600 level. Nonetheless, this is a market that should continue to find plenty of buyers on those dips, and I think that given enough time the markets will find one reason after another to go long. When the stock markets get like this, there is in a whole lot that can derail these types of moves. The US dollar falling has put a bit of a turbocharged into the S&P 500 as well, and therefore I think that we are going to see a bit of an impulsive move.
For myself, one of the things that I prefer to do in these situations is to sell puts. You can do this through most stockbrokers, and using the SPY options market as a vehicle can help you build up premium in a situation that looks to be a bit of a run away.