S&P 500 traders slightly bullish on Tuesday

The S&P 500 rallied a bit during the trading session on Tuesday, reaching towards the 2600 level before finding resistance. This is an area that was previous support, so it should function as that resistance. However, the Friday session features the jobs number in the United States, so it’s likely that we will continue to see questions about the overall economy. The overall attitude of the market will continue to be very cautious, because we are at highly elevated levels, and of course the questions about the economy will continue to be an issue. The volatility has picked up significantly, and this continues to be something that a lot of traders are concerned about.

If we did break above the 2650 handle, then it would build up a lot of momentum, perhaps reaching towards the 2700 level above, and even beyond there. The alternate scenario of course is that we go looking towards the 2500 level underneath, which is the bottom of the massive support zone that we have. A breakdown below the 2500 level should send this market to even lower levels, perhaps breaking the entire uptrend. I anticipate that there is going to be extreme amounts of volatility regardless, especially considering that we are worried about trade wars, headlines, and the like. I believe that it is probably difficult to trade this market until we get beyond Friday, which of course will have a major influence on the economic outlook of the United States as well.

S&P 500 Video 04.04.18