S&P 500 breaks trendline during Thursday trading

The S&P 500 continues to show signs of weakness, perhaps in fear of higher interest rates. With the jobs number coming out today, there is the possibility that the figure comes out strong enough for the US markets that we could see higher employment expected in the future, and thereby higher interest rates. If that’s the case, it should send money away from the stock markets, and of course put a lot of bearish pressure in this market. At this point, I’m not interested in putting a lot of money into this market until we get that announcement. If we break down below the 2590 handle, then I think we go much lower. If we can break above the 2630 handle, then it shows that we have a significant turnaround, and perhaps the ability to reach towards the upside again. It certainly looks as if the market is trying to lean towards the downside, so I think it wouldn’t take much to spook it much lower.

I would keep my position size very small, and then add as the market rewards you with agreement. I think that the uptrend line being broken is of course a very negative sign, but it’s not until we get the confirmation of the jobs figure that I think any type of clarity will present itself. I think that the better the jobs number, the worse the S&P 500 does due to what will undoubtedly drive interest rates higher in the bond markets. Remember, higher interest rates make for less attractive opportunities in the stock market.

S&P 500 Video 04.05.18