S&P 500 shows slight bullish pressure during the weekThe S&P 500 has been reasonably quiet during the week, as we have traded in a tight range. However, we have recently rallied over the last couple of weeks, so it looks very likely that we will continue to go much higher.
The S&P 500 has been quiet during the week, trading in a 40-point range. Remember that Monday is Memorial Day in the United States, so the markets will be very quiet into almost nothing with the exception of perhaps the CFD market. However, the underlying comes back to work on Tuesday, so moved should be ignored until then. If we can break above the 2740 level, the market should then go to the 2800 level, perhaps 2900 after that. The uptrend line underneath is massive support, I think that if we break down below the 2700 level, we could fall as low as that uptrend line to look for value hunters to come back into the marketplace.
I think that the market should continue to find value hunters in the market regardless, and even though it has been very noisy as of late, it does look very likely that we are to continue to find longer-term investors looking to put money to work. If we break down below the 2600 level, then the market could unwind towards the 2500 level after that, and perhaps even lower than that. I like the longer-term outlook for this market, and I think that we will eventually go looking towards the 3000 level, and one last hurrah before we get some type of significant break down. It’s been noisy, but every time we have fallen there have been value hunters to get involved in this market and continue to push to the upside overall.