The stock market has stabilized after an early pullback and this snapback likely should help the S&P 500 (NYSEARCA: SPY) get to the 2835-2840 area on the upside (2842 on S&P Futures).
Market breadth is near flat and much better today on the downside than might be expected.
Tuesday’s 5/1 POSITIVE breadth was the second best this year and is a bullish factor which should help this minor recovery continue.
S&P 500 Chart Analysis
The pullback got down to 2785 area which is the 50% Fibonacci area of the 2 day range and just above where the S&P 500 breakout took place yesterday.
(Note I alerted clients on my private Twitter account at @Newtonadvisors about this being important)
I expect a move back to the highs and the rally to continue up to the 2841 area which is a better area to consider selling rallies in my opinion.
For now, this stabilization is a positive for markets despite the negative trend and momentum.
Twitter: @MarkNewtonCMT
Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
