S&P 500 traders sell at the open on Friday

The S&P 500 broke down during the trading session on Friday as American sold off stocks, perhaps based upon the concerns in Syria, a potential trade war between the United States and China, or perhaps even just a bit of exhaustion after we had rallied a bit. Earnings season so far has been reasonable, and I think that we will eventually find buyers in the market, but rising interest rates in America will also be a bit of a problem. Longer-term, we are still very much in an uptrend, so I don’t want to short this market, least not yet. If we break down below the 2600 level, then I think the market could probably unwind rather drastically, perhaps reaching to 2500 and beyond at this point. However, I think that overall, we will continue to see buyers based upon value, as we are already starting to see this later in the day on Friday.

If we can break above the 2720 handle, the market would be free to go much higher, perhaps reaching towards the 2800 level after that. Longer-term, I still think that we could go to the 3000 level above, but it is going to take a long time to get there, and we need to get some type of good solution to the arguing between the United States and China, and perhaps a signal that the Americans are going to stay out of Syria.

S&P 500 Video 23.04.18