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The S&P 500 continues to see bullish pressure, as we gapped higher to kick off the trading session. We did pullback just a bit in order to fill that gap, and then rallied again. At this juncture, I think that it is only a matter of time before we go to the upside and look towards fresh highs again. The 4400 level above is a target that I think a lot of people will be looking towards, especially as the 50 day EMA is walking right along the uptrend line, to offer a bit of a “floor in the market.”
S&P 500 Video 31.05.21
Remember that liquidity drives this market more than anything else, so it is likely that the fact that 10 as it has over the last 13 years. You should also keep in the back of your mind that this was the last week of the month, and next week is the jobs announcement, so that could have its influence as well. I think this market will continue to be somewhat quiet but ultimately bullish and therefore we need to look at the trend through the prism of bullish pressure over the longer term, so I look it dips as an opportunity to get long.
If we break down below the uptrend line and the 50 day EMA, then the next support level is closer to the 4000 handle, where the gap sits just above. All of that should coincide to be massive support going forward. If we break down below there, I might be a buyer of puts, but I will not short this market.
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This article was originally posted on FX Empire