The S&P 500 has rallied again during the trading session on Thursday, as we continue to see the uptrend reach higher. Ultimately, the 3200 level underneath is significant support, and if we break down below the 3200 level, then the market goes down to the 3150 level, and then possibly the 3100 level. Either way, this is a market that I think should continue to find buyers but given enough time it’s likely to continue going much higher.
S&P 500 Video 27.12.19
All things being equal, pullback should offer plenty of value as it gives us an opportunity to take advantage of the market “on the cheap”, as we continue to see the Federal Reserve offer repo operations as central banks around the world also liquefy the markets. Ultimately, this is a market that will continue to thrive upon the cheap money out there. The 50 day EMA is above the 3100 level and I think that it’s only a matter of time before the moving average offers dynamic support. I believe that the trend should stay going forward, and at this point it looks as if the market is ready to have another positive year, but it may not be a strong as it was the previous year.
If we were to break down below the 50 day EMA it could be an issue, but even then, I expect to see plenty of support near the 3000 handle. Ultimately, this is a market that can’t be shorted until we make some type of major move, and at this point if it were to do so, it would probably be based upon some type of bombshell.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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