S&P 500 rallies during the week, but finds resistance at large, round number

The S&P 500 rallied initially during the week, reaching towards the 2700 level, which is an area that is significantly important as a large, round, psychologically significant number, and an area that has both been support and resistance lately. The uptrend line underneath should keep the market afloat though, so I think the next couple of weeks will be very crucial. If we pull back from here, I suspect that the 2600 level should be a buying opportunity, where we could bounce and reach towards the 2700 level. The alternate scenario is that if we break above the top of the shooting star that should send this market towards the 2800 level next. The longer-term uptrend is still intact, but it has been very noisy as of late.

The earnings season in the United States has been rather strong, and that of course helps the S&P 500 as well. Overall, I am bullish of this market, unless of course we break down below the uptrend line, or even more importantly the 2500 level. Expect a lot of noise going forward, as we have a lot of geopolitical concerns, and places like Syria and of course a potential trade war between the United States and China. If we can stay out of that, I think that it is only a matter of time before the buyers come back in and pick up value. Overall, we are still on track to go to the upside, but things could change rapidly.

S&P 500 Video 23.04.18