S&P 500 rallies after initially trying to fall on Friday

The S&P 500 initially fell down towards the 2750 level, before finding a bit of support during the day. Bouncing from that area is a very bullish sign, and I think that we could go to the 2780 level in the short term, and a break above there opens the door to the 2800 level. This is a market that has been an uptrend for some time, the fact that we gained back all of the losses during the day tells me just how strong this market is and how much buying pressure there is underneath. I don’t have any interest in shorting the S&P 500, and I think that the 2700 level offers a bit of a “floor” for the short term trader right now. Beyond that, there is a major uptrend line below there as well, so regardless I think that if you are patient enough, you can follow the upward trend in and pick up dips as value.

If we break above the 2800 level, the market should continue to go higher, perhaps reaching towards the 2900 level after that. This is a longer-term uptrend and I don’t see that changing anytime soon. Eventually, I expect this market to go to the 3000 level, but that might be closer to the end of the year at this point. There will be occasional hiccups of volatility, so keep that in mind as we worry about geopolitical headlines and of course tariffs.

S&P 500 Video 11.06.18