The S&P 500 initially pulled back on Monday, but we continue to see the markets attempt to break above the 7,000 level. This is a market that eventually goes higher from what I can see.
S&P 500
The S&P 500 initially pulled back just a bit during trading here on Monday, but it has since turned around as New York came online. That's been the story here, that Americans are the main driver of what goes on and of course foreign investors who are trading while the markets open. So, a lot of electronic overnight trading ends up being somewhat nonsensical.
Market Outlook and Key Levels
If we can get a daily close above the 7,000 level, I think this is a market that probably makes a move to 7,200 fairly quickly, and I do believe that eventually we will find plenty of buyers in this market to make that happen. But remember that we are in the midst of earnings season and that has a major influence on how things play out.
Earning season of course could throw a few monkey wrenches into the market, but ultimately, I think we already know what is going to be important and what the overall attitude is. So, with this, I think we have a situation where the market is a buy on the dip with a hard floor somewhere around 6,750.
Eventually, like I said, I think we do break out. The market's just been killing time with earnings, and now we have a scenario where eventually we will get a reason to go higher. Who knows what it will be, but at the end of the day, I think just expectations with the Federal Reserve cutting rates might be enough.
Potential signal: I am a buyer as soon as this index closes on the daily chart above 7,000. I would have a stop loss at 6850, and a target of 7250 above.
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