The S&P 500 rallied significantly during the week, showing signs of strength again. Heading into the G7 summit, there could be some headline risk out there, but at the end of the day I don’t think it matters. This is a market that continues to focus on earnings out of the United States and of course the fact that money wants to flow to the United States quicker than anywhere else right now. Overall, I anticipate volatility, but these pullbacks should be looked at as buying opportunities in the short term. I believe that the market continues to be one that focuses on the upside, so I don’t have any interest in shorting.
I believe that the 2700 level underneath will continue to be supportive, but I also think that it is only a matter of time before we see volatility pickup, but it’s not until we break down below the uptrend line that I have marked on the weekly chart that I would be interested in shorting for any length of time. I believe that we are destined to go to the 3000 level eventually, but it may take some time to get there. That’s not to say that it’s going to be the easiest trade in the world the day, but it certainly looks as if we are trying as hard as we can to go towards that area. I anticipate that we could get there by the end of the year, so therefore I think that the buyers will be rewarded if they are patient enough.