The S&P 500 initially tried to rally but rolled over a bit and broke back below the 2900 level as traders were probably focusing more on vacation than anything else. With that being Labor Day on Monday, the American markets will be closed. Beyond that, traders are concerned as to whether the United States and Canada can come to some type of trade agreement. Eventually they will, but it certainly seems to be taking its time. There are a lot of potentially unpleasant things going on right now, and that has people selling. At this point, I think a pullback is probably not only necessary but very likely. Rallies at this point will struggle until we get some type of clarity with the tariffs situation in China, and of course the US and Canadian negotiations.
The NASDAQ 100 also rolled over, and it looks as if we are probably going to pull back from here. At this point, we need some type of good news to turn things around, otherwise we will regroup at lower levels. Going into the Labor Day weekend, it’s probably a bit much to ask for the market to want to put a butter risk on and hang on to it. I think the 7500 level underneath is the “floor” in the market, and I think at that point we could turn around and continue the longer-term uptrend. Overall though, this is a market that I think continues to be very noisy, and very difficult. If we were to break down below the 7500 level, that would probably send this market much lower, and could end the uptrend overall, and could bring in a lot of selling pressure.