- The S&P 500 gapped higher to kick off the session on Monday, but keep in mind this is the CFD, it's not the underlying index.
We did get a little bit of futures trading, which of course was positive, but we really don't know whether or not that will actually play out over the next 24 hours, because once the underlying index opens, then we'll see a bit of a convergence.
A lot of this is coming down to the idea that the Middle East is possibly heading towards peace. That being said, I think short-term pullbacks open up the possibility of buying opportunities, and while I'm not a big fan of trading just off what the CFDs are doing, the reality is that it is a breakout in the direction of the overall trend, and that much I like, I don't have an issue with.
Technical Support and Long-Term Trends
If the S&P 500 Index do drop from here to fill the gap, we could find ourselves heading back down towards the 7500 level, and that's an area that I think would be very interesting if we get that opportunity.
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Longer term, I don't know where we're going. Higher would be the only answer I have for you. There's no real measurement to take. In the short term, I suppose you could look at the consolidation and expect a roughly 200-point move, but in a strong uptrend like we have, and if we get some type of relief in interest rates, I don't see why we don't just continue to grind to the upside.
Ultimately, this is a market that I like, I just recognize that maybe headlines could come out over the next 24 hours that rattle it, and unfortunately, that's just the world we live in.
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