S&P 500 Battles Major Technical Chart Level & Blackout Period

The S&P 500 comes into the week fighting an Nvidia (NVDA) pull back. After hitting $140/share, Nvidia closed last Friday at $126.57. In addition, the S&P 500 is into major resistance via the trend line seen in the chart above. This trend line has seen a pull back of 10.75% on the first hit, the second hit of the resistance trend line saw a 5.65% pull back. This is the third hit of the line, at minimum investors should anticipate a pull back of 3.80%.

In addition, investors should be aware that by the end of the week, 50% of the S&P will be in a blackout period. This is a period where companies cannot do share buybacks ahead of their earnings release. The last pull back of 5.65% coincided with this blackout period. This does raise questions about how much impact a public company is having with share buybacks.

Investors are also entering a tricky time. The USD/JPY is at a pivotal level, France is in turmoil and the U.S. elections are quickly coming. In addition, the Federal Reserve is finally seeing a weaker jobs market but inflation remains above 3%.

Investors should stay on their toes...