The S&P 500 continues to see a lot of noise, as we are trying to determine where rates are going.
Middle East headlines continue to be a major problem at this point.
The S&P 500 initially did try to rally a bit during the trading session on Friday, but we are pulling back a little bit as the interest-rate situation in the United States is still very detrimental to how stocks behave. We are above 5.2%, and at one point we were at 5.22%.
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Now, we are rolling back in the interest-rate situation, so maybe that can give stocks a little bit of a boost. However, it looks like we are struggling at this juncture. The market is simply sitting in the middle of a larger consolidation area between roughly 7,600 on the bottom and 7,800 on the top.
Rates will matter
I think it remains one that is paying attention to the headlines coming out of the Middle East. Ultimately, this market is likely to continue to be one of those situations where, if you get enough of a dip, you may be looking for value. Ultimately, this market, I think, remains one that is paying attention to the headlines coming out of the Middle East, which drive what happens in the bond market and yields.
At this point, if we can break above the 7,800 level, that could kick off the next leg higher. But right now, we're nowhere near that. I think you are going to have to expect a lot of choppiness and a lot of noise.
It is hard to look at the longer-term story here on the charts and not think that it is bullish. I do think eventually the buyers will win out, but we have some work to do.
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