The S&P 500 rallied again during the week a test the top of the uptrend channel, showing signs of extension and perhaps even a little bit overbought attitude. That being said though, pullbacks are to be thought of as potential buying opportunities, as we are in the midst of a “Santa Claus rally”, and are likely to continue seeing even more of this. As for a target, we had recently broken above a major ascending triangle, and that could send this market looking towards the 3200 level based upon the measurement. With that, pullbacks continue to offer value and should be supported near the 3000 level so it’s not until we break significantly below there that I would consider selling.
S&P 500 Video 02.12.19
Even then, I would be a bit cautious about doing so as the market has been so stringent. We could even break above the 3200 level, and if we do it’s likely that the market will then go looking towards the 3200 level after that. This continues to be more of a move into quality names as well, as the markets have been goosed by the Federal Reserve stepping away from tightly and monetary policy. Ultimately, that is really what moves the markets, as well as the end of the year cycle when money managers are trying to pad their earnings for clients to see. With this, it’s difficult to suggest shorting this market, and at this point any time we pull back it’s more than likely going to be a value proposition the people are more than willing to take.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- AUD/USD Forex Technical Analysis – Trading on Weak Side of Retracement Zone at .6770 to .6801
- Gold Price Forecast – Gold Markets Bounce
- AUD/USD and NZD/USD Fundamental Daily Forecast – Capex Data Pressures Aussie, Business Confidence Rebound Supports Kiwi
- Natural Gas Price Prediction – Prices Tumble as Hedge funds Press Their Advantage
- NZD/USD Forex Technical Analysis – Strengthens Over .6411, Weakens Under .6394
- USD/JPY Weekly Price Forecast – US Dollar Continues Higher Against Japanese Yen