The S&P 500 trading in a narrow range.
The S&P 500 has been forming a nice base since 4/25/2016, and the base is under the all-time high of 2400. We feel this could be a pause to refresh before a potential move to new highs.
The S&P 500 set an all-time trading high on 3/1/2017 at 2400.98. The market then moved down to 2345 (-.05%) and the 20-day moving average, the blue line in the chart, where some buying came into the markets. So, the buyers who had been buying during the last week of February were not very happy.Why? They were losing money! So, 2400.98 has become resistance because those February buyers could potential become sellers. Why? Most of the time those who have lost money want to get back to even and sell out of fear of losing money again. Once the selling is over new buyers could potentially come in, and potentially move the markets to new highs.
The S&P 500 is an unmanaged index of 500 widely held stocks. Past performance may not be indicative of future
results. It is not possible to invest directly in an index. Opinions expressed are not necessarily those of Raymond
James. Information contained was received from sources believed to be reliable, but accuracy is not
guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee