The S&P 500 has gone back and forth during the course of the trading session on Tuesday as we see a lot of very noisy trading. As we are waiting for inflation numbers to come out on Wednesday, Tuesday was not much of a trading session. The 3850 level continues to be a little bit of a short-term magnet for the price, but I think the real action will be at the end of the day on Wednesday. Because of this, I would not be surprised at all to see very quiet trading until we get some more information.
Above, the 3900 level is an area that should offer resistance. The 3900 level could offer a certain amount of resistance, but if we could break above that, then it’s likely that we could try to challenge the 50 Day EMA which is just below the 4000 level. The 4000 level is also the scene of a gap, and of course, is a large, round, psychologically significant figure that people will need to pay attention to.