The S&P 500 is overextended and has hit the 3250 level. At this point, I think that we will probably see a lot of things come to fruition over the next several sessions, not the least of which will be profit taking by money managers in order to produce profits for their clients at the end of the session. I believe at this point it’s likely that we will see value hunters on dips, but we may have a red candlestick at the end of the week. The 3200 level is an area where we could have a bit of support, not only there, but also the 3150 level. Underneath there, I believe that the 3000 level is essentially the “floor” in the market.
S&P 500 Video 30.12.19
All things being equal I believe that the market will continue to see value hunters in this marketplace and at this point you can see that we are overbought by just about any metric you use. Look for value, that’s what has worked for several years and there is no sign that that’s going to change anytime soon. Longer-term, I believe that we will probably go looking towards the 3500 level but that could be months down the road as although we are in a bullish market, the reality is that we can’t keep chugging along at this rate of gains. 2020 will more than likely be a bit slower than 2019, but still looks to be very positive due to the Federal Reserve supporting markets.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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