The S&P 500 is testing the highs again, and I think it’s only a matter time before we break up above there, and it continues to offer a bit of a “buy the dips” mentality in this market. I think that it’s obvious the 2800 level should be a bit of a floor in the short term, and I think that if we can break above the 2830 level, the market will be free to go looking towards the 2880 level after that. I have no interest in trying to short this market, and I believe that the 2800 level also has a “zone of influence” extending down to the 2790 handle. With the US economy being one of the few economies in the world that’s growing at a healthy clip, it makes sense that the S&P 500 benefits from this.
If we were to break down below the 2790 handle, the market is likely to continue to go lower, perhaps somewhere in the realm of 2770, followed by the 2740 level after that. I do believe that it’s going to be very noisy, but keep in mind that the S&P 500 has the uptrend going forward, so obviously the easier route longer-term is going to be to the upside. I have no interest in shorting again, and I do believe that we are looking at the 2880 handle, perhaps even followed by 3000 if we get some type of good news coming out of America or perhaps the trade war calms down.