The S&P 500 has initially pulled back during the trading session on Tuesday but then shot higher to test resistance. It looks as if the CFD market is trying to break out right along with the futures market, and that we could go looking towards the 2880 handle. That’s an area that was massive resistance in the past, so I think it will take something special to break above there. However, for those of you who like trading momentum and breakouts, this could be the perfect scenario as just above was a significant amount of selling pressure. If we can break above there, then the market should continue to grind to the upside.
Earnings have been good in general, and it looks as if the trade war is starting to take a backseat as far as the minds of traders are concerned. Overall, I think that buying on the dips continue to offer value anyways, and I think that the 2800 level underneath is a massive floor. Overall, I think that the markets offer value on these dips and I believe that many people were simply waiting for those opportunities. I believe that the support at the 2800 level underneath extends down to the 2790 handle. A break down below there would send this market even lower. I do like the idea of the S&P 500 rallied still, because quite frankly the uptrend has been so strong as of late.