The S&P 500 initially rallied during the trading session here on Friday but gave back gains pretty quickly as we approach the 7500 level.
This is a market that I think continues to see a lot of overhead pressure at the 7500 level due to psychology and of course the fact that it was a previous swing high.
Ultimately though, the one thing that you need to keep in mind more than anything else about the S&P 500 is that it is Memorial Day on Monday in the United States and therefore the markets will be closed.
There will be some electronic futures trading overnight and the like, but really, I would not expect much. The only real question is will something stupid happen over the weekend that gets everybody in a panic. I cannot guarantee that. If they do, then expect the futures market to be absolutely on fire when they do open, perhaps trying to grind back down to the 7300 level.
Support and Consolidation Levels
The 7300 level is an area that a lot of people will be watching for potential support. If we can break above the 7500 level, then the market is likely to go looking to the 8000 level.
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We are in the midst of consolidation. I think that probably continues to be the case after we had shot straight up in the air. I like the idea of buying the S&P 500. I just think we can get a better price, and I obviously would not do it until Tuesday at the very earliest.
All things being equal, interest rates dropping could help the S&P 500. I think that is the real name of the game here, just as it has been for quite some time.
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