The S&P 500 has been quiet on Tuesday, as we are looking at a market that is heavily influenced by external factors.
S&P 500
The S&P 500 has been pretty quiet during Tuesday trading as we continue to just be in a bit of a holding pattern. We are in the midst of earnings season, so that's part of the equation here. But we're also all sitting around waiting to figure out what's going to come of the Middle East situation between the Americans and the Iranians.
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As things stand right now, it is a market that I think short-term pullbacks probably continue to be attractive for a lot of traders. But when I look at this, it's hard not to see consolidation after a massive shot higher, and that suggests to me that we are just digesting those gains. What we need is some type of catalyst to get going. I imagine it'll probably be some headline coming out of the Middle East that gives false hope, but at this point in time, it seems like the market's still ready to move on those headlines despite the fact that they normally get turned right around within 24 hours.
A Technically Sound Stock Market
This is a technically very sound stock market and a chart that, if you didn't know anything was going on around the world, you would think it's an asset that you should be a buyer of. The 7600 level is potential support on a pullback, as it had been previous resistance, so it does make a certain amount of sense that we would see a little bit of market memory there.
Regardless, I don't have any interest in shorting this market. We're nowhere near a bear market. We're actually within a whisker of all-time highs. But it just looks like the 7800 level has a little bit of psychology attached to it and possibly options barriers to keep the market down.
I like the idea of buying dips. Full disclosure, I'm actually long of this and have been for several days now, just biding my time out and waiting for momentum to re-enter. Regardless, this is a market that I think cannot be shorted, because if it can rally in the face of high interest rates and a war, it's hard to tell exactly what would knock it back down.
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