The S&P 500 is below the 3000 handle, and that’s an area that is obviously psychologically and structurally important. However, we have rallied a bit during the early part of the Thursday session, write about where the hammer formed a couple of weeks ago. This hammer extended down to the gap underneath that is just above the 2950 handle, so it’s likely that we are going to find support underneath.
S&P 500 Video 19.07.19
All things being equal I think that it’s only a matter of time before we rally but I also recognize that the market will probably continue to be tentative and erratic, because we are in the middle of earnings season. That of course causes a lot of volatility but at the end of the day the only thing that the market truly cares about is whether or not the Federal Reserve is going to cut interest rates. It does appear that to be the case, so at this point I am more than willing to buy dips because we have so much in the way of support underneath based upon that gap. The 2950 level has been crucial more than once, and therefore should be thought of as the “floor” in the market. Beyond that, we also have the 50 day EMA showing up in that general vicinity, so I think it’s only a matter of time before buyers jump back in. At this point, I have no interest in shorting this market and I do think that the buyers continue to run the show. Ultimately, I don’t see a situation where we can short this type of freight train.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- US Stock Market Overview – Stocks Slide into the Close, Oil Prices Jump
- EUR/USD Weekly Price Forecast – Euro continues to churn
- Crude Oil Weekly Price Forecast – Crude oil markets crater for the week
- Gold Weekly Price Forecast – Gold markets continue to test resistance
- GBP/USD Weekly Price Forecast – British pound showing signs of resiliency
- Silver Weekly Price Forecast – Silver markets exploded to the upside