NEW YORK (TheStreet) — TheStreet’s Jill Malandrino is with Danny Riley, CEO of MrTopStep, discussing the recent move in the S&P 500 and where it is headed next.
Riley said the movement for the S&P 500 has been the same all year: Make new highs, sell off a bit, and then continue rallying higher.
While the market opened lower this week and proceeded to trade down for three consecutive days, it is catching a solid bounce on Thursday. He added that according to the data, prices will likely finish strong next week headed into expiration Friday.
Although this is typically a slow time of year, quite a bit of traders are still hanging around, waiting for some type of movement. That might not come until Sept. 6, when the next nonfarm payrolls data will be released.
Traders will likely use the data as a tell for whether the Federal Reserve will taper its stimulus program later in the month.
Riley concluded that markets have proved they can handle a higher interest-rate environment and that he doesn’t foresee this upside momentum slowing anytime soon. It remains a good environment for individual stock and sector selections.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein’s Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
— Written by Bret Kenwell in Petoskey, Mich.