The S&P 500 initially tried to rally during the trading session on Friday, but then turned around to show signs of weakness. By doing so, we ended up forming a bit of a shooting star and quite frankly I think that the market is getting a bit overextended. Many of my contemporaries on Wall Street had suggested that we could get to the 3250 level by the end of the year, and that level has been hit. That being said, I think that a pullback towards the 3200 level will probably be a buying opportunity, just as the 3150 level underneath there will be. The 50 day EMA offers dynamic support and I think it’s only a matter of time before we find buyers at that point. Ultimately, this is a market that is bullish and therefore there’s no real way to short it.
S&P 500 Video 30.12.19
Looking at this chart, it’s only a matter of trying to pick up bits and pieces of value and therefore I think looking at those 50 point intervals on the way down as entry points could work out quite well. The next week or so will be very thin though, and of course it will be until after we see the employment figures early next month that we can start to consider that the “true liquidity” is back. At that point, we will have a little bit more in the way of clarity, and I would love to find some type of pullback to take advantage of the pullbacks in order to find value.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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