The S&P 500 initially tried to rally during the trading session on Friday in the Globex markets but gave back the gains to form a slightly negative candlestick. At the end of the day, it does not matter much due to the fact that we are celebrating the Independence Day holiday over the next three days in the United States, so the underlying index is not actually open. With that being the case, we are at the top of the range in general that we have been in over the last couple of weeks, as the 3150 level has offered significant resistance. A pullback from here should continue to grind back and forth in this area with the 3000 level underneath being the floor.
S&P 500 Video 06.07.20
Eight 150 point range could make quite a bit of sense, and it should be brought up that the 50 day EMA is sitting just above there so that could come into play to offer support. The 200 day EMA is underneath there as well, so I think it is only a matter of time before buyers would return. I would not necessarily want to short this market, but I do want to buy at on a dip. If we break out above the 3150 handle, then it is likely that we go looking towards the 3200 level that is an area that will cause significant resistance, so do not be surprised at all to see the market struggle in that general vicinity. Remember, the Federal Reserve is supporting the markets, so at the end of the day it is a market that is decidedly one way.
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This article was originally posted on FX Empire
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