The S&P 500 initially fell during Thursday, but then turned around to show signs of life. As we continue to go back and forth around the 2900 level, it makes sense that the earnings season is probably the main focus currently. So far, we haven’t seen a lot of reaction, so it’ll be interesting to see how this plays out as we get into the middle of the earnings season. At this point, I believe that we are trying to deal with the idea of pressing the all-time highs, and whether or not earnings are going to justify these high levels. Overall though, this is a market that has been very bullish for some time, so there’s no point in fighting the trend.
S&P 500 Video 22.04.19
If we were to roll over from here I think there is plenty of support at the 2880 handle, the 2850 handle, and then the 2790 level. The market clearly has a lot of the “buy on the dips” type of mentality as we started to see late on the day on Thursday yet again, so I believe that the easiest way to make money right now is to come in and try to pick up value as it presents itself. The alternate scenario is that we break out to a fresh, new high and then go looking towards the 2940 level for opportunity. That level is major resistance, so breaking above there opens the door to the 3000 handle, which is the longer-term target of a lot of pundits on Wall Street. We are still in and uptrend until we break the 2790 handle.
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This article was originally posted on FX Empire
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