SP 500 Forex Signal: Buy Signal Targets 7,790 as Stocks Rebound

Potential signal:

• I am willing to buy here, with a stop of 7600 and a target of 7790 above.
• I am keeping my position small.
• The S&P 500 continues to see a lot of choppiness over the last few weeks, and Friday was more of the same. We are trying to recover a bit, though.

S&P 500

The S&P 500 initially dipped during trading on Friday but turned around to show signs of rallying. Ultimately, this is a market that I think continues to try to stay in the same range between the 7,600 level on the bottom and the 7,800 level on the top.

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Ultimately, this is a market that I think will continue to see a lot of back-and-forth choppiness. If we do turn around and rally from here, the 50-day EMA sits just above. This could be an interest-rate story, but it could simply be another wrinkle in the artificial intelligence story because there are a lot of concerns about the funding for artificial intelligence, the amount of money thrown at it, and the lack of profitability. That has been a major driver of the S&P 500 for a while.

The market is still concentrated in one area, as usual

We have recently seen a lot of whining and complaining about how the market is concentrated in one spot. But let's be honest here: with passive investing, that has been the case for several years now. Right now is not any different than any other time. It is just that a few of the names have changed.

If the market were to break above the 7,800 level, then we could go looking to the 8,000 level. We will just have to wait and see whether or not that happens.

This choppiness, I think, is simply the market trying to catch its breath and figure out what to do next, especially with interest rates as high as they are. If interest rates suddenly fall off, and it is not because everybody is rushing into bonds, then it could, in theory, give us a little bit of a boost as well. The reaction on Friday does bode fairly well for continued neutrality here.

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