The S&P 500 has been very volatile as of late, but Friday was bullish, as it looks likely we are going to go much higher. The 2810 level is an area that continues to attract a lot of attention, but it appears that we are trying to build up the necessary momentum to finally go higher.
The S&P 500 rallied during the Friday trading session, as we continue to see the 2810 level offer significant resistance. If we can break above there, the market should then go higher, perhaps reaching towards the 2825 level, and then eventually the 2850 level. Short-term pullbacks should continue to offer buying opportunities, and I believe that the market will find plenty of support at the 2790 handle underneath, as we continue to see a lot of interest around the level. I think that ultimately the market should continue to go to the 2850 level longer term, but it is going to take a while to get there.
If we were to break down below the 2775 handle, then I would be a seller of this market, but I don’t think that’s going to happen, at least not in the short term. There seems to be a lot of a “buy on the dips” mentality out there, as algorithmic traders are willing to pick up anything close to a 1% drop. The tax reform, the corporate gains, and of course the global expansion continues to push the S&P 500 higher. The US dollar falling also helps with exports, so that’s yet another reason that this market continues to attract money. With repatriation of funds from overseas, many major companies are going to be buying their own stock back, and that of course will lift this market as well.
MORE WILL UPDATE SOON!!
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