S&P 500 pulls back slightly during the Friday session

J.P. Morgan led US banks lower during the trading session on Friday as US Bank struggled a bit, dragging the S&P 500 lower. The 2680 level has been massive resistance, and it has been massive resistance more than once. When I look at the hourly chart from a distance, I can see that we are clearly forming some type of basing pattern, so I think that once we do break above the 2680 handle, we are likely to go much higher, perhaps as high as 2800, but it’s going to take some time to get there.

I believe that buying short-term pullbacks will continue to be the best way to trade this market, as it will offer value. Otherwise, if we break down below the 2600 level, the market probably drops down to 2550 again. The longer-term trend is still bullish, although we have seen a lot of volatility and choppiness as of late. If we break down below the 2500 level, the market probably will unwind rather significantly, reaching down towards the 2400 level rather quickly. I think at this point, the market is very likely to continue to see a lot of volatility, but I still believe in the upward pressure more than anything else. If you are patient enough, you should be a will find value on short-term bounces, and then be able to ride this market towards the upside.

S&P 500 Video 16.04.18