Technically Speaking – April

April 7, 2026

Technically Speaking:

Long Term Resistance SP500:  7,010

Long Term Support SP500:         6550 then 6180

The markets ended the 1^st quarter on a high note, despite the volatility leading up to the last day. Investors spent the month of march on edge about the conflict with Iran and oil prices surging. The S&P did briefly fall below a long-term support level of 6,550 but recovered and has managed to stay above that level since. If we see the S&P fall below 6,550 again, the next long-term support level is 6,180. This would be another 5%-6% drop from current levels. If the conflict with Iran continues and oil prices remain high, then we could possibly see the S&P drop to the 6,180 level.

There is a lot of volatility in the markets right now. Investors are very reactive to any update on the Iran conflict from President Trump. This will continue until we see a resolution in the middle east and the straight of Hormuz is reopened. At that point we should see oil prices drop back down below $100 per barrel and the markets react positively. However, we cannot be certain when this will happen. So, in the meantime we are being cautious but using market drops as buying opportunities. We took profits and raised cash towards the end of last year and kept that cash on the sidelines while we look for buying opportunities. We have been deploying this cash little by little when we see fit. We have been using this cash to buy good companies that are now on discount and the indices. We will continue to do this as we monitor the updates with the Iran conflict. When the conflict is resolved, we expect the markets to turn around and move higher.