The S&P 500 initially fell overnight in the electronic session but started to find buyers just before the Americans opened up for business. By doing so, the market rallied significantly, pressing towards the highs yet again. This is a marketplace that has a lot of resistance just above but certainly has seen a lot of buying pressure over the longer-term. Dips continue to be bought, and then of course is a very strong sign in the very essence of an uptrend.
S&P 500 Video 20.09.19
To the downside I see the 2980 level as being significant support, and it should continue to pick this market up every time we dip towards that area. However, what’s interesting about the Thursday session is that we could even get to that level before bouncing. With that in mind, I am very bullish of this market but recognize we may have a lot of work to do to finally break out to the upside as there are a lot of concerns out there globally. One new dynamic over the last year or so seems to be that the S&P 500 is actually being treated as a bit of a safety asset as money relieves places like Europe and China and come looking towards United States assets as a potential buying opportunity.
Based upon the consolidation underneath the 2950 handle, one potential target for this market could be the 3100 level, but quite frankly it wouldn’t surprise me to see this market go even higher than that now that the Federal Reserve has suggested that it was going to do what it takes to keep the market somewhat elevated.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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