The S&P 500 has been explosive to the upside during the Friday session, as the US dollar has been drifting lower. I think that the market is now looking to go to the 2800 level above. With the move on Friday, it’s likely that we will continue to see buyers on dips.
The S&P 500 went sideways initially during the day on Friday, but as you can see the volatility had picked up. The market has rallied significantly, and we are knocking on the door of 2790. The 2800 level is the next large, round, psychologically significant barrier to overcome, but we have not been able to do so quite yet. I think if we can break above the 2800 level, the market should continue to go much higher. I think at that point, we will probably go to the 2900 level, then eventually the 3000 level which is my year-end target.
Short-term pullbacks are buying opportunities as the offer value in a situation that has been extraordinarily bullish, based upon tax reform, corporate profits, and of course a lot of economic optimism in general. I think that the 2770 level is the short-term floor, but quite frankly even if we break down below there I think there will be plenty of opportunities just waiting to happen. The attitude of the markets will continue to be bullish, and although there will be headlines occasionally the cause issues, this is a good way to get rid of “scared money”, and therefore gives us an opportunity to start buying. This has been a long-term moved to the upside, and I don’t see that changing anytime soon. With the devalued US dollar, it should help exports coming out of the United States, and that of course helps the S&P 500.
MORE WILL UPDATE SOON!!
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