S&P 500 find support at crucial trendline for the week

The S&P 500 initially fell during the week, reaching down to the 2600 level. This is an area that has been supportive more than once, and by bouncing from there in forming a massive hammer, I believe this shows that the S&P 500 is not ready to break down. If we can break above the 2700 level, that should free this market to go to the 2800 level, followed by the 2900 level. I still have a longer-term target of 3000, but I do recognize that if we were to break down below the uptrend line, extensively the 2600 level, the market should then go to the 2500 level. Breaking down below there would kill the uptrend.

The hammer of course is a bullish sign, and a sign of massive support. Because of this, I think that plenty of value hunters are going to come back into this market on dips, unless of course we break down through the uptrend line. I think that the market will eventually go much higher, perhaps reaching to higher levels. It might take a bit of wherewithal to hang onto that move, and therefore think you should build your position slowly, and look at the longer-term attitude of the market in general. If we did break out to the upside, it’s likely that the overall attitude will only increase in volatility and volume. Beyond that, I think it could also to increase in momentum to the upside as we see the longer-term trend continue.

S&P 500 Video 30.04.18