The S&P 500 has been very noisy overall lately, but when you look at the chart, it’s obviously a bullish market over the longer-term. I think that the market looks likely to find plenty of support below at the 2740 level anyway, so I think what we are looking at is a market that is trying to build up the necessary momentum to finally break above the 2800 level. I think that once we break above this area, the market will be free to go much higher. Dips should be thought of as momentum building exercises, and even though we are starting to see fears about trade wars heating out, the reality is that so far it has not stuck with traders as it has been very measured and seems to be thought out process.
If we were to break down below the 2740 level, it’s likely that the market would drift down to the 2700 level after that. The market looks likely to continue to find support at that area, and I think of that is essentially the “floor” of the short-term uptrend. We are essentially in a trading range, so keep that in mind and understand that it’s not until we break out of this 100 point area that you can hang on to a larger move. Take advantage of being a retail trader, and the ability to jump in and out of positions rather rapidly to take advantage of what I think is a bullish market, but somewhat restrained.