S&P 500 rallies significantly after jobs number

The S&P 500 exploded to the upside during the session on Friday, as we broke above the 2660 handle late in the day. We had cleared a bit of resistance at 2655, and it looks likely that we will continue to go towards the 26 8 level. On the longer-term charts, we are in a bit of a wedge, but I think that the supportive candle from the weekly chart will convince a lot of traders that we are ultimately going to go much higher. I believe that the 2620 level should be massive support as well, and that should continue to attract a lot of value traders.

If we can break above the 2700 level, we will not only break horizontal resistance, but we will break the top of the overall wedge, which of course would be a very bullish sign. I think that the market participants like this jobs number, because it wasn’t too high, meaning that the Federal Reserve is on track to continue its hike tightening cycle, but not expanded which was something that people are starting to fear. Pay attention to the treasury markets, because if interest rates can stay lower, that should continue to help stock markets as well. In general, I think that this is a “buy the dips” scenario that we are trading through yet again. If we broke down below the 2590 level, we could then go to the 2500 level, although that seems very unlikely now.

S&P 500 Video 07.05.18