The S&P 500 has rallied a bit during the week, breaking above the neutral candle during the week, that was printed during the previous week. I think that the 2800 level now offers a significant amount of demand, and I think that underneath it’s only a matter time before buyers come back in on a pullback, and I think that if we can find some type of buying opportunity, I think that it’s only a matter of time before the value hunters come back as earnings have been rather stringent and decent in the S&P 500. There is an uptrend line that we would have to deal with as well, so obviously we have a lot of room to fall before changing the overall attitude of the market. We have just made a “higher high”, which of course will have caught a lot of attention as well.
The GDP figure did miss by 0.1%, but quite frankly the fact that it printed at 4.1% will continue to give traders a reason to cheer, and buy stocks going forward. I believe that the market could continue to be noisy, but overall I think that it’s probably best to look for value on dips and not chase the market. Earnings season always gets a bit skittish, and this one of course won’t be any different. There are geopolitical concerns out there, so pay attention to those as well, as tensions in the Middle East could pick up with the Iranians.