- The S&P 500 was very noisy during the trading session on Thursday, as we continue to threaten the 6,000 level.
- If we can break above the 6,000 level, then I think you’ve got a real shot at the S&P 500 recovering again.
- If it can recover, then I like the idea of traders looking at this through the prism of possibly running all the way back to the $6,125 level.
A short-term pullback at this point should continue to see plenty of support at the $5,900 level, which is an area that has acted as support multiple times over the last couple of weeks. We are in the midst of the earnings season and that does cause some noise, but really at this point in time, I think traders just don’t know what to do with themselves. Traders love drama, they react as such. We got good earnings from Nvidia overnight, but there are concerns about tariffs, which are now pushed back, and is the US slowing? Well, the GDP doesn’t suggest that it’s any worse than we had hoped for because we wanted lower rates out of the Fed.
More of the Same? Probably.
As a result, it makes sense that we are in a range. If we can break above the 50 day EMA, then I think we will make that run to 6,125. But until we break above that 50 day EMA, I think you’re just stuck going sideways looking for some type of real move. Regardless, at this point, I have no interest in shorting this market even if it does break down. This is a market that is built to go higher over the longer term, and therefore you need to keep that in mind, as it isn’t an equal weighted index.
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