All things being equal, though, this looks like a market that had rallied for some time and now is trying to enter some type of consolidation range, which is something that you can say about all of these indices and is not necessarily a bad idea. After all, you can’t go straight up in the air forever.
S&P 500 Technical Analysis
The S&P 500 is slightly positive, but you can see we’re just stalling here right around 6850. If we can break out to the upside, then I think a fresh new high is very likely, and this time of year is typically bullish, so that wouldn’t be a huge surprise. Overall, I think this is a scenario where traders are working off some of the froth from the big recovery, going back to the Friday session, November 21. And now we are just trying to work this off before maybe the next move to the upside.
Ultimately, this is a market that I think will continue to be attractive, and this time of year typically is positive. So, I like it. It doesn’t mean that it has to go straight up in the air, but I think short-term pullbacks will continue to attract a little bit of buying pressure.
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