S&P 500, US Dollar, and Potential Near-Term Movements to Monitor
A pullback to the 1384 areas on the S&P 500, if not a bit lower, could happen in the coming days.
Near term, we had a nice run to 1409 and met resistance there. I would expect a pullback to the 1384 areas on the S&P 500, if not a bit lower in the coming days. The US dollar is likely to get a bounce, which will also pull down precious metals along with stocks near term.
I think this could be an opportunity to buy as we approach pivot pullback buy points, but of course I will monitor in the event the pullback becomes more dire than expected.
Below are charts of the US dollar and The S&P 500 Index and potential near term movements to monitor. At my firm, we closed out long positions in Direxion Shares Exchange Traded Fund Trust (NYSEARCA:NUGT) with nice gains yesterday as well as stocks with trading profits while we watch the pullback action.
Editor's Note: David Banister is the chief investment strategist and co-founder of ActiveTradingPartners.com, a small-cap portfolio and market advisory service.
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