, economic data and political catalysts sway sentiment in this market constantly, but it is important not to lose sight of the levels. The 2615 to 2587 is the .618 area relative to the recent structure. This is an area to look for buying activity which appeared Thursday by the close. Friday was when a trigger occurred along with dramatic follow though.
This information is valuable even if you are not trading the S&P outright. Since this market generally acts as a broader market gauge, you can use signals in this market to help time decisions in individual companies. For example, the current technical structure implies broader strength in the near term. If this market breaks out of its consolidation and pushes the 2751 , it may be well on its way toward the 3K level which sets the stage for a summer rally.
Keep in mind, this market is very sensitive to many economic and political variables. Don't be distracted by the reaction to this information, instead question how price is behaving at the predetermined levels. Now that momentum has shifted back to , the next relevant area to consider is the 2710 to 2751 (.618 of recent structure). If price can close strong in this area, then it is more likely to push into the next zone which is the 2746 to 2804 area.
In summary, overall price is still within a broader consolidation but there are signs that imply a broader breakout is more likely. Monitor fundamental catalysts but do not fall victim to exaggerated news or over dramatized hype. Instead, use the levels that this market faces as it moves forward as more of a measure of reality. If price breaks below the 2587 support, then more sentiment should be expected, otherwise, this market is still following the road map that has been outlined by the long term count available on S.C. There is no guarantee that the market will stay on this path, but watch for fundamentals that reinforce this technical view along the way and plan ahead, do not react.
Questions and comments welcome.