I am buying today, with a stop at 7600, and a target of 7900.
The S&P 500 has launched again today, as traders are looking to take advantage of the idea that the Middle East could calm down, and of course the interest markets are following suit.
S&P 500
This is a market that has been consolidating for a while with a bit of a rectangle. This consolidation being broken down to the upside opens up the possibility of a big move to the upside, perhaps measuring all the way to the 7900 level.
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Short-term pullbacks at this point in time for me look like buying opportunities and, quite frankly, I have no interest in shorting this market. It is a consolidation that is now continuing the massive move to the upside. Keep in mind though, we are in the middle of earnings season, and as a result, this is a market where we are going to have to pay a lot of attention to several moving pieces.
Technical Targets and Support Levels
Ultimately, the 7500 level is a bit of a floor, and that will be especially true once the 50-day EMA races toward there. This is a technical indicator a lot of people will be watching overall. This so far has offered support and will be worth paying close attention to.
The size of the candlesticks is impressive, just as the size of the gains in the previous session were impressive. This looks like a market that is running away, and therefore I look at any short-term pullback as a potential buying opportunity.
Clearly, I have no interest in shorting the S&P 500 right now. Ultimately, I am looking for a lot of buying opportunities based on the ability to find any value whatsoever in the contracts. I do think that the US indices in general, including the S&P 500, continue to be very positive. This remains a market that is jumping on momentum.
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