S&P 500 traders rally again on Thursday

The S&P 500 has rallied a bit during the trading session on Thursday, as we continue to see value hunters coming back into this market. This is a market that has been beaten up a rather hard lately, and I think that we will find a lot of value hunters coming back after the jobs number as well. At the jobs number is strong, that shows that earnings should continue to be healthy as well. Beyond that, I think that the market should continue to be very volatile, but I think that if we get good news coming out of the negotiations or headlines coming from the United States and China, that should also put a lot of “momentum” traders coming into the market.

If we were to break down below the 2600 level, the market probably continues to go down towards the 2550 handle. I believe that the absolute “floor” in the market is closer to the 2500 level. Longer-term, I believe that the S&P 500 should continue to attract positive momentum, but I do recognize that a breakdown below the 2500 level would be a bit catastrophic, perhaps sending a lot of bearish pressure into the market. All things being equal, I believe that the market is going to be one that we can start buying on pullbacks unless we get some type of negative news from either the trade war talk, or of course the jobs number itself as it has a major influence on where this goes next.

S&P 500 Video 06.04.18