The S&P 500 had a slightly positive session initially during the day, testing the 2010 level. However, that area offered enough resistance to turn the S&P 500 back down, and as a result it appears that the “risk appetite” of the trading community faded out. It’s not a big surprise though, considering that we have the Scottish Independence Vote during the session today, so course a lot of keyboard can be nervous in general. Ultimately, even though we banged around during the session on Wednesday, we essentially went nowhere and we still remain near the 2000 level.
With that being the case, I recognize that the 2010 level above is massively resistive, and if we can get above there it should kick off the next leg higher. That would become a “buy-and-hold” type of situation as far as I can see, and I would be very confident. Ultimately though, if we pullback from here to the 1980 handle, we should see plenty of buying pressure down there as well. It’s basically the support level for the larger consolidation area, and as a result I think that we will continue to see that area hold up quite well.
Longer-term uptrend, I don’t see it changing.
This is a longer-term uptrend, and I don’t see it changing anytime soon. Yes, I realize that some of the pundits out there are calling for the market pullback drastically, but at the end of the day I don’t think it’s going to happen anytime soon. Quite frankly, there is no other place to put money at the moment as the yields in the bond markets are offering nothing. Because of this, I believe that we will eventually see earnings come back into play, and the S&P 500 will continue to grow. On top of that, where else do you want to be your money? Europe is a mass, and we don’t even know what’s going on with the United Kingdom at the moment. It’s just a simple matter of money needing a place to go, and the S&P 500 continues to be that place.
