The S&P 500 continues to see a lot of noise, as the markets are reacting to higher interest rates, but then there was a rumor in the news that the US is working with Iran to open the Strait, sending buyers back in.
S&P 500
The S&P 500 initially looked pretty weak during the trading session on Thursday as interest rates continue to scream higher. However, later in the session, at about 12:00 noon New York time, we received something across the wire suggesting that the United States and Iran are working on a phased opening of the Strait of Hormuz.
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If that's the case, then it's obviously good economic news. The reaction shows you that we are still very much sensitive to what's going on there, and I believe ultimately that could be what decides where we go next.
The 50-day EMA underneath offers support. I also believe that the 7,600 level offers support, as it had in the past, and it had also been resistance to the upside. The 7,800 level is a pretty significant area of resistance. If we were to break above there, I think it would allow the S&P 500 to go much higher. This is a market and index that continues to see plenty of support, but this is also a market that simply remains positive, or at least “not that bad” in light of everything.
Even though interest rates are screaming higher, stocks are behaving relatively well.
That is probably the biggest takeaway over the last couple of weeks in this market and U.S. indices in general. It tells me that the market does not want to fall. Draw your conclusions from that, but I think it's pretty obvious who actually controls the market right now, and that would be the buyers.
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