The S&P 500 has rallied slightly during the trading session on Monday but continue to struggle with the 2680 level. I think ultimately, we will probably try to make our move to the 2700 level, but I would anticipate a lot of choppiness and perhaps pullbacks going forward. I think that the markets will eventually break above that level, perhaps clearing the 2710 handle. I like the idea of buying dips, and we have recently seen this market bounce from a major uptrend line below. I like the idea of buying these dips and then adding every time we rally as well. I would do so in small incremental amounts though, because there are earnings and of course a lot of concerns out there when it comes to the stock markets.
If we were to break down below the uptrend line underneath, extensively the 2600 level, then we could start selling, but I don’t think that’s going to happen in the near term. I think it’s much more likely that we break above the 2610 level and go looking towards the 2700 level after that. Pay attention to the interest rates in America, because they will course have a massive effect on whether people are willing to put money into stocks, as when they rise money seems to be attracted to bonds as they offer a much safer return. The higher the interest rates, the worse stock markets will do overall. With decent earnings though, I suspect that we have more upward pressure ahead of us.