S&P 500 traders rally during the week, testing significant resistance

The S&P 500 has rallied over the last 3 weeks towards the 2680 handle, an area that has been resistance more than once. If we can break above that level, the market should then go to the 2700 level, perhaps even higher than that to the 2800 level. I think that short-term pullbacks will be buying opportunities, and that it’s only a matter of time before traders will get involved. Banking stocks during the day on Friday cause a little bit of a push back, but I think that the overall attitude of this market will be influenced more by the overall risk appetite around the world.

The hammer that formed during the previous week is a very bullish sign, and I think that if we can break above the top of the candle for this past week, it signifies that the buyers have taken control again, and it’s likely that we will go to the 2800 level next again. Expect a lot of choppiness and volatility, but I think that the overall consolidation will eventually give way to massive buying. If we were to break down below the 2500 level, it’s likely that the market would unwind rather significantly. However, it doesn’t look like that’s what’s next, least not based upon the last couple of candles. I don’t think it’s going to be an easy trade, but it could be very profitable if you are patient enough in a market that continues to show a lot of resiliency, but obviously has a lot to focus on when it comes to the Americans and Chinese.

S&P 500 Video 16.04.18