The S&P 500 has rallied a bit during the trading session on Monday, although it was in limited electronic trading in the Globex markets. Ultimately, the stock markets in America look very healthy and they do look like they are going to go to the upside. Pullbacks at this point should be a buying opportunity as there are plenty of support underneath, especially near the 335 level, and then possibly the 3300 level. The uptrend line underneath should continue to offer an opportunity to cause support as well, but at this point the 50 day EMA is reaching towards the upside and I think it’s likely to continue to cause reactions as well.
S&P 500 Video 18.02.20
All things being equal, the market is likely to continue to see a lot of volatility and we are a bit overextended but at the end of the day the central banks continue to inflate the markets, as they keep the markets liquefied with cheap monetary policy. All things being equal, this is a market that you should be looking for value in and not thinking about shorting. The 3500 level above is what I had as a target for this year, but quite frankly it looks as if we are going to get there rather rapidly. This could be yet another explosive year in the S&P 500, which is a bit surprising, but at the end of the day you can’t fight the market, and you certainly can’t fight the Fed. Look for value and take advantage of it.
This article was originally posted on FX Empire
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