On the hourly chart, the S&P 500 has broken above the 50 SMA again, one of the indicators that I pay attention to. The market has a significant amount of noise around the 2775 level, but the resiliency of the market cannot be denied. This brings to mind the saying that “a market takes the stairs higher, and the elevator lower.” What this means is that grinding higher in a slow and steady manner is the norm for the buyers. It’s generally panic that sends the market lower. At this point, there is no sign of panic, and I believe that ultimately that will be one of the main drivers of this market, sending it to higher levels eventually. With that in mind, I am bullish, and I look at short-term dips as buying opportunities. I believe that there is a significant amount of support near the 2750 handle, and at several other levels underneath. I do recognize that the 2800 level above will continue to cause some issues, but ultimately I think it’s only a matter of time before we not only reach that level but build up the necessary momentum to break above it.
There are concerns about trade wars out there, but they seem to be fading a bit, which makes sense considering that in the end it may just be a negotiating tactic anyway. So far, the sanctions and tariffs have not been of major substance. As long as that’s the case, I believe that investors will look past it.