The S&P 500 showed massive amounts of volatility during the trading session on Friday, and that truly showed itself as General Flynn decided to flip state’s evidence.
The S&P 500 was very volatile during the Friday trading session, and as you look at the hourly chart, you can see that the volatility has extended in both directions, and was getting worse by the end of the day. The massive negative candle formed on the hourly chart was due to General Flynn suggesting that he was willing to testify against the White House, and that sent the markets into a bit of a shock. However, we turned around and gained back most of those losses, and by the end of the day Friday it looks like we are very bullish again. A break above the 2650 level should send this market to the upside, perhaps looking towards the 2700 level. The 2600 level underneath should be massively supportive, and I believe that the market will continue to have a lot of a “buy on the dips” type of mentality. The algorithmic traders continue to take advantage of these pullbacks, as we have not had a proper pullback in ages. Any time we see the market pull back the way it has during the day on Friday, it seems like the buyers are willing to jump in. Friday was no different as you can see.
I believe that the 2600 level underneath should be thought of as a bit of a “floor” in the market, and I think that the general attitude of the market is very bullish, and a break above the 2650 level is possible, even on Monday. However, over the weekend we have a lot of potential for headlines coming out of the news that will cause this market to move quickly, be it up or down.
MORE WILL UPDATE SOON!!
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