S&P 500 rallies to break out during the week

The S&P 500 has shown significant strength and during the week, slicing through the 2700 level and a sign of strength. By closing towards the top of the candle, the market looks as if it is ready to continue to go higher, perhaps reaching the 2800 level. I think that if we can break above the 2800 level, then the market probably goes towards the 2900 level after that. The market breaking above the wax tells me that we are going to continue the overall uptrend, and it’s likely that pullbacks will continue to attract money.

I believe that the 2600 level underneath is essentially the act as a “floor” in the market, but quite frankly I don’t even think we get down there. The US dollar softening up a bit has given us an opportunity to rally from here, but the market will course have a lot of noise and choppiness involved in it. I believe that the market will continue to be noisy in general, but certainly seems to have more of an upward proclivity. I don’t have any interest in shorting until we break down below 2600 at the least, if not the 2500 level. I believe that the market participants will continue to be looking at the stronger corporate earnings, and of course buy the S&P 500 as a result. I think that the US stock indices will lead the rest of the world, although we do have headwinds of interest rate hikes ahead of us.

S&P 500 Video 14.05.18