Will S&P 500 Futures Stall At 2,000 Following 10+% Surge Over Last Month?

The S&P 500 futures hitting 2000 is huge, both technically and psychologically, according to Dennis Dick, prop trader at Bright Trading and co host of Benzinga's PreMarket Prep morning show. The benchmark index touched the 2000-level on March 4 and March 7 and closed Monday's trading at 2,001.76. On Tuesday, the index touched a high of 1,996.88. "It (2000 level) served as major support back in November and December, and if you subscribe to the theory that old support becomes new resistance, then we may find sellers there," Dick said. Dick said that appears to be what has happened the past few days as the index have topped out just above 2000 on Friday, and Monday, and failed exactly at it again on Tuesday.The coincidental roll over in Oil and financials is not helping either. "Until we can take hold the 2000 level, institutions may continue to take some profits here from the recent run," Dick added. JPMorgan's Adam Crisafulli said stocks are trading lower in pretty much every major market this morning. A combination of soft Chinese trade numbers and commodity negativity, combined with overbought prices following the sharp weeks-long rally, is weighing on prices on Tuesday. "Looking bigger picture at the SPX, fundamental changes helped the index rally from its 1810 low but the last ~50-60 points have been propelled more by momentum, positioning adjustments, and catalyst anticipation and all these tailwinds appear to be fading," Crisafulli wrote in a note to clients. Trading veteran JJ Kinahan said 2000 is a psychological level and noted "We could push to 2010, even 2038." Kinahan sees the recent move as possible evidence of people who did not put money into the market in January and February beginning to allocate capital. "The 2000 level is physiological and for us to break the upside we need to breech 2000 a couple times to break the psychological barrier to enable to run to 2010 or 2038," Kinahan said.