- The S&P 500 has gapped to the upside during the early hours on Monday as we continue to see upward pressure.
- That being said, the market is essentially just killing time at this elevated level, and therefore, I don't really read too much into it other than it's more of the same, somewhat sideways action.
- This does make a certain amount of sense due to the fact that we have had such a bullish run this year, and we get tantalizingly close to a resolution to the US election cycle.
Keep in mind that this week features a non-farm payroll Friday, and that has a major influence on what happens with markets. Furthermore, we are in the midst of earnings season, so that also has a major influence as well. I don't have any interest whatsoever in trying to short this market. I think that pullbacks will end up being buying opportunities in this environment.
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I believe that the $5750 level could offer a certain amount of support due to the previous resistance level. Underneath, we also have the 5,650 level that could offer significant support. The 50-day EMA is hanging around in that area also, and therefore we have a lot of technical support. In general, this is a market that, as long as we continue to go back and forth, is essentially just going to grind away and work off a lot of the froth that we have put into this market.
It Might Be Quiet Until Jobs Numbers Come Out on Friday
Between now and Friday, as each day progresses, we will probably see less and less momentum and probably more and more consolidation. The earning season, of course, has been a bit of a mixed bag, but it's a mixed bag any other time. So really at this point, I'm looking for some type of opportunity to pick up cheap contracts. That being said, value is always something that people will be paying close attention to.
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