S&P 500 Technical Analysis

Taking a look at the S&P 500, you can see that we opened up pretty neutral, although I would say the fact that we are not pulling back after a nice bounce on Thursday does suggest that perhaps traders are willing to come into the market and pick things up on the first day of March, which does make sense. A lot of times there are new orders that have to come in for the larger funds. So typically, the first day of the month, we’ll see a little bit of action. At this point, even if we do pull back, I suspect that there are plenty of buyers underneath that are willing to step in and take advantage of any valuable opportunities. In other words, it’s a buy on the dip market.

The 5,000 level underneath obviously has a certain amount of psychology attached to it, so don’t forget about that either, as this market will typically trade from one big area to the next. The 50 day EMA is currently at the 4,900 level, and then underneath there we have the 4,800 level, which of course has been important previously as well.