- The S&P 500 started the day on Monday, rather the week, but has turned around pretty quickly to show signs of resiliency yet again.
- This suggests to me that we are going to continue to see buyers jumping into the market on each and every dip.
It is the beginning of the year, so it does make a certain amount of sense that we will continue to see a little bit of choppy behavior, but at the end of the day, the S&P 500 has been in a very strong uptrend, and I just don’t see that changing anytime soon.
With this being the case, I think we have to look at this as a market that offers value when it drops, and I look at the 6,800 level underneath as a major floor in the market. The 50-day EMA is right above the 6,800 level as well, so I think all things being equal, this is a market that I will continue to look at as an uptrend that there are plenty of people interested in buying.
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We did just get the Non-Farm Payroll number coming out slightly weaker than anticipated and that still has the idea of the Federal Reserve cutting rates being a reality.
Political Theater and Future Gains
Speaking of the Federal Reserve, we’ve also had the Department of Justice start looking into Jerome Powell. That caused a little bit of chaos early in the session, but now, it looks like Wall Street’s willing to look past that as political theater because that might really be what it is.
Ultimately, this is a market that I think given enough time does go quite a bit higher, but we will have that psychological barrier in the form of 7,000 just above that could cause some headaches. Anything above 7,000 opens up for a much bigger drive.
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