Serge Berger, better known as The Steady Trader, believes that the S&P 500 could be positioned to post a record high in May. The stock market in the US has been trading sideways for the past several weeks, only posting a gain of 1.7 percent so far this year, as investors continue to utilise the FED’s movements as a catalyst for moves into either positive or negative territory. After Friday’s nonfarm payrolls data reported a 232,000 gain in the month of April, equities surged due to the fact that this number wouldn’t alter the FED’s timeline for raising rates. The S&P 500 however has been defiant in its rally according to Serge, who says that the line of resistance at 2,120 has capped the indices gains. This line of resistance’s hold on the S&P has weakened as seasonal and technical factors enter the market.

Historical seasonal trends suggest that there could be more upside potential for the S&P 500 throughout the month of May. Additionally, bearish momentum appears to be waning based on the recent strong bullish reversals on the weekly chart. Based on this information, Serge is looking to buy the S&P 500 at 2,120 with a target of 2,150. His stop loss for the trade is at 2,100.

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