The S&P 500 has rally during the week, breaking above the 2700 level, and more importantly from a technical analysis standpoint, breaking above the top of a shooting star from the previous week and the previous week before that. In other words, this is a very bullish sign.
The S&P 500 rallied during the week, slicing through the tops of a couple of shooting stars and the 2700 level. This is a very bullish sign, and I think that the market should continue to go to the upside, perhaps reaching the 2800 level next, and then eventually the 3000 level. The S&P 500 has been explosive during 2017, and it looks as if the continuation is ready to happen. US economic numbers continue to be very bullish, and although the jobs number missed on Friday, it appears that it only dampened spirits to the upside, not killed them.
I think there is more than enough reason to think that dips will be buying opportunities, and we may find the 2700 level to be a bit of a floor. I think that the 2500 level will be a floor, as it is a large, round, psychologically significant number. Ultimately, this is a market that continues to find reasons to go higher, and I don’t see anything on the chart to suggest that it will be anything different as the buyers are likely to look at any pullback as value. Money managers have been coming back from the holidays during the week, and it looks as if they have put money to work yet again. With this, the “long only” fund certainly are starting to push the market again. I suspect that we continue to have a nice longer-term investing opportunity.
MORE WILL UPDATE SOON!!
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