S&P 500: This Key Support Needs to Hold for Potential Rally to 5350

investing.com:

If you had been following the S&P 500 closely this past week, it likely would have left you scratching your head if you were trying to align the news with the market action.

For example, on Wednesday, the inflation report came out hotter than expected. Yet, it did not phase the market in the slightest, as the market continued to hit its head on the 5180SPX resistance region we outlined a few weeks ago.

Then on Thursday, we again supposedly received some «bad» inflation news an hour before the market opened. Yet, the futures did not react to the downside. The futures remained elevated and again tested the 5180SPX region into the open before the market decided to turn down.

As one of our subscribers noted at the time:

«Weeks like this week just prove that sentiment reigns supreme. Some people still believe the market can't top unless this or that indicator flashes red or some fundamental number gets stretched but this kind of proves the market will do anything it wants whenever it wants.»

Yet, I saw many misleading headlines and articles on Friday claiming the market dropped due to the inflation reports. I guess they must have considered that the market took 2 days to think the inflation information over before it decided to begin to drop. Yea, that makes sense.

But, as Ben Franklin once noted, «so convenient a thing it is to be a reasonable creature since it enables one to find or to make a reason for everything one has a mind to do.»

By Mr. Franklin's standards, does that mean we have to consider the business media «reasonable?» I may beg to differ on that point. But, they certainly are often quite creative in their desire to align news with market moves, while truly not being burdened by the facts.

This is why I urge