S&P 500 rally significantly after strong jobs number

The S&P 500 has rallied significantly during the day on Friday, reaching towards the 2740 handle. The 2740 handle has been resistance previously, and I think that the fact that we are forming a shooting star on the hourly chart suggest that we are going to continue to pull back from this area again. I think ultimately we could break out above there, but we need to build up the necessary momentum. We probably rallied much too quick to continue moving, so at this point I think that value hunters will probably come back in on short-term pullbacks.

Once we do break above the 2740 handle, the market should continue to go towards the 2750 level, and then possibly 2800 after that. The 2700 level underneath is the “floor” in the market, I think it’s only a matter time before buyers would come into this market as we approach that region. The S&P 500 of course is highly sensitive to risk appetite, which of course has picked up after those good Nonfarm Payroll figures. I like buying dips, have no interest in shorting the S&P 500, and I think that we will continue to find plenty of value hunters going forward. The alternate scenario is that we just break out to the upside, but I think we need more bullish pressure to continue doing so. Pay attention to the overall geopolitical situation, because if it starts to fall apart that will weigh upon this market. However, if things improve on the trade war front, that could send this market much higher.

S&P 500 Video 04.06.18