S&P 500 traders sell on Wednesday, looking for support

The S&P 500 has fallen during the trading session on Wednesday, reaching towards the 2700 level. That is an area that has been supportive a couple of times already, and of course has been resistive. The large, round, psychologically significant number has shown a bit of interest more than once, and I think that the overall attitude of this market should be one of bouncing, but if we were to break down below the 2690 level, then we need to unwind a bit to find support underneath.

Some of the reaction is due to Donald Trump suggesting that perhaps the US and China were going to come to terms, and of course the US and North Korea talking may not give a solution either. However, this will eventually be a short-term blip on the radar at best. Ultimately, this is a market that I think will continue to offer a lot of value, if you are patient enough to take advantage of it. We will have to see what happens at the 2700 region, which is an area that I think should continue to be important. If we were to break down below the 2690 handle, then it’s likely that we could go down to the 2650 level where we should see plenty of support as well. I have no interest in shorting currently, I think that there will be plenty of value hunters coming back as soon as they realize that this is typical noise from comments ahead of a negotiation.

S&P 500 Video 24.05.18