For the past several weeks we have spoke about the markets and in particular the S&P 500 (chart) trading in a range (blog). Well on yesterday the S&P 500 (chart) broke down through the 1100 mark and traded as low as 1075 before closing up above 1120. Fast forward to today and the S&P tacked on yet another 20 points. Although the S&P intraday broke sharply below the 1100 level on Tuesday, it did not close below it. Had it closed below 1100, we would be having a different conversation. That said, I would say that the first real test of the 1100 support zone of the S&P 500 passed with flying colors.
Personally, I still do not think we are out of the woods yet. There are still too many global headwinds especially out of Europe, and as long as this uncertainty exists, I expect abnormal volatility to continue. Also, the much anticipated jobs report which comes out before the open on Friday will certainly test the mettle of these markets. In today’s market environment there is never a dull moment. Good luck to all.
Have a good evening.