Technically Speaking – April

May 2, 2024

Technically Speaking:

Long Term Resistance: SP500 5300 – 5660

Long Term Support: SP500 4840 then 4550

The markets had a rough April, with all the major indices ending the month in negative territory. After having 5 straight positive months, this was bound to happen. Stocks were becoming overbought, and it was only a matter of time before we saw a pullback. The positive out of April was that many companies reported solid 1^st quarter earnings. After inflation came in slightly higher than expected, the Federal Reserve announced it will keep rates steady. The Fed also said it does not have a definite timeline on when it will begin cutting rates.

The long-term resistance for the S&P 500 is still 5300 and if it can breakthrough that level, then the next resistance level is 5660. Our long-term support level is still around 4840 and if it falls below that level, the next support is 4550. We decided to take off our downside protection when the S&P dropped below 5,000. If the market increases back over 5,100 and above, we will look to put the downside protection back on. We continue to have cash on the side, holding it in the money market funds that re paying around 5% interest. This allows us not to be to be rushed when putting money into the markets. Opportunities continue to arise as earnings reports come out, and we look to take advantage of these opportunities if we believe it is the right time to begin building a position in a company or sector.