The S&P 500 closed out the session on Friday right in the middle of the range I’ve indicated on the chart below (quantitative, not technical); giving up the most of it’s gains. With about an 11 handle range from 1372 to 1383, I would suggest there is not enough reward on either side of the trade at this point in time.
There is plenty of support under 1372 and any movement below that I suspect is only temporary. While we are currently positioned long equities, I would take the opportunity, should it present, to add to those longs.
Eleven handles is a rather tight range on my proprietary calculation and I expect this will lead to a “two steps forward, one step back” type of movement in the very near term until the SPX is again comfortably above 1390. At which point I think we resume the upward trend through mid-May, making new yearly highs.
Today is light on domestic economic news, but look for any news to be interpreted as good news this week and the breakout to the upside will be imminent.