The S&P 500 continues to see buyers during the month of May, and I think June will probably be more of the same before it's all said and done.
That doesn't mean that we won't get the occasional pullback because quite frankly, this is a market that has gotten too far ahead of itself, and a little bit of a pullback probably opens up the possibility of finding some type of value.
I'm particularly interested in the 7300 level. That's an area that I think a lot of traders may see market memory at, and this, of course, is a level that during the month of May did attract a lot of attention. All things being equal though, I remain bullish in this market, and I think that traders will continue to see this as a market that probably continues to grind to the upside.
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Middle East Tensions and Market Momentum
The S&P 500 market continues to see a lot of concerns around the Middle East and as long as that situation remains so fluid, there is a little bit of hesitation for people to go too far out on the risk appetite spectrum, but it's also worth noting that momentum is one of the biggest movers of markets and we clearly have that here.
We have not formed a red candlestick on the weekly chart in what seems like a lifetime, so I would expect to see 1 or 2 during the month, but I also expect to see plenty of buyers willing to come in and pick up cheap contracts if and when they occur. Ultimately, I think we're going to try to get to the 7700 level. I don't know if we will get there in June, but I certainly think we'll try.
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