S&P 500 Signal Today 06/02: Will Buyers Return? (Chart)

(MENAFN- Daily Forex) Potential signal

• I am a buyer if we CLOSE above 6800 in the S&P 500, with a 50 point stop, and a target of 6945.

Will the S&P 500 continue to see buyers of dips through earnings season?

The S&P 500 fell during the trading session on Thursday in the early hours to test the crucial 6800 level. The 6800 level has been significant support multiple times and therefore I think it is an interesting area to see whether or not we get some type of bounce.

If we do in fact bounce from here, I think you've got a situation where you could see the market just simply continue the overall consolidation phase that we've been in for a while. I think at this point in time it's worth watching whether or not we can hold this area because, quite frankly, it would just confirm everything that's been going on for the last several weeks.

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If we break down below here, then you're starting to look at a move down to the 6700-level followed by possibly 6500. This has been a very ugly and choppy market so far this year and of course, we are starting to see the artificial intelligence narrative disappear and I think that ultimately is what is changing at this point.

With this being the case, I believe that we have a scenario where market participants continue to look at this as a market that quite frankly just can't decide what to do with itself. With that being the case, I am willing to step in and buy the dip but I also recognize that if we give this area up, then it's probably time to just simply step away for a while and let the market do what it's going to do, perhaps trying to find some type of stability underneath and a bit of a bounce that we can take advantage of.

I do not want to short this market. Quite frankly, there's too many reasons for it to turn around based on earnings and with that being said, I remain neutral but longer-term.

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