The S&P 500 has broken higher during the week, and especially on Friday as the jobs number was so much better than originally anticipated. This had the market in a major “risk on” attitude. Because of this, the S&P 500 rallied towards the 3200 level by midday, and it now looks as if the Friday movie is just a combination of the massive bullish pressure that we have seen all week.
At this point, it is highly likely that we would see a market pullback only met by those wishing to go long of the market underneath. There is a massive amount of liquidity out there that continues to push the market around, and it is likely that S&P 500 traders are now looking to go towards the all-time highs. At this point, the market is overtaking the 3200 level.
S&P 500 Video 08.06.20
The 3000 level underneath will be a massive support level now, and although the market is overdone, that does not seem to matter, as the volatility is only picking up, not falling. I would not be surprised at all to see this market go looking towards the all-time highs in the next couple of weeks. However, if we turn around and breakdown below the 3000 handle, then we will have to rethink things. I can give you 100 reasons why this market should go higher, but at the end of the day that is what it is doing, and it is difficult to fight that. The market looks highly likely to continue whipping people around in both directions. A pullback would be the most desirable way to get involved.
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This article was originally posted on FX Empire
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