The S&P 500 has pulled back slightly during the trading session on Tuesday, as traders to profit going into the new year. Ultimately, there’s probably a little bit more downside coming, but there are plenty of support levels underneath that can continue to lift this market. Quite frankly, I think the most likely candidate is going to be near the 3150 handle the where the 50 day EMA is going to come into play. Overall, I like the idea of buying these pullbacks but recognize that you may need to be a bit patient in order to get the right price. All things being equal though, I do like the idea of buying based upon value.
S&P 500 Video 02.01.19
If we were to break down below the 3150 handle, and the 50 day EMA it’s likely that we could go down to the 3100 level. Underneath there, then the next major support level is the 3000 handle. I do like the idea of buying regardless though, because quite frankly nothing has changed and it looks very likely that the Federal Reserve will continue to liquefy the markets, showing signs of acquiescing to Wall Street yet again. Multiples have expanded a bit in the stock market, but quite frankly there isn’t much in the way of interest-rate attractiveness out there when it comes to bonds, and with the Federal Reserve likely the loosen rates later this year, stock markets will probably continue to do what they’ve done for the last several months.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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