The S&P 500 has been very quiet over the last couple of days, and I think we will continue to see more of this as a market decide where to go next due to the trade war fears, currency war fears, and of course earnings. I think that currently the market is trying to digest the recent gains, and the 2800 level has been an area where we have seen a lot of supply. I think it’s going take a catalyst to finally break out to the upside, and once we do we need to go looking towards the 2880 handle. That’s an area that is even more resistive, but I think that short-term pullbacks are going to be thought of as buying opportunities. However, if we turn around and break down below the 2740 handle, then I think the market could unravel a bit more.
In general, the S&P 500 will react to not only earnings, but concern about headline risk will continue to be one of the biggest drivers of this market as well. The volatility will continue to be an issue, but ultimately I think it’s only a matter of time before the longer-term attitudes come back into play, as we are most certainly the uptrend. That doesn’t mean that is going to be easy, but I think people are looking to build up enough momentum to finally break out. In the short term though, expect choppiness.