S&P 500
The S&P 500 initially tried to rally during the day on Wednesday, but pulled back to reach towards the 2675 handle underneath. That is an area that caused a bit of a bounce, a thing that I expect to see going forward.
The S&P 500 initially tried to rally during the trading session on Wednesday, but rolled over as the 2700 level above offers significant resistance. We pulled back towards the 2675 handle, an area that offered support, and I think that will continue to be the theme of this market, buying on the dips. I think that the 2650 level underneath is massively supportive, and I think it’s only a matter of time before the buyers get involved and reach towards the upside again. I think that eventually we will break above the 2700 level, and once we do the market should continue to go much higher. If we break down below the 2650 level, that would be very negative sign, but I think as we go into the holidays, traders are willing to sit on the sidelines and simply not trade. The volume will be there, so therefore I think that we probably will get relatively calm trading between now and Christmas.
Ultimately, this is a market that will be thin for a while, and it’s not until we are several days past New Year’s Day that we typically see volume coming back into the market, so therefore it’s probably going to be rather difficult to hang onto trades for any length of time, and as a result being careful and being small with your trading position is probably the best way to take advantage of the situation we find ourselves in. Longer-term, I think that we do rally, but that’s a story for next year.
MORE WILL UPDATE SOON!!
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