The S&P 500 initially fell on Wednesday, but then broke higher yet again. It looks like we are going to continue to grind sideways overall, at least until we get more clarity on what the Federal Reserve is getting ready to do. The FOMC Meeting Minutes could give us an idea as to how hawkish or dovish the central bank is, and I believe that overall by the time the dust has settled, the market should continue to go higher as quite frankly we should start getting good news coming out as earnings season is getting ready to take center stage.
Financial markets continue to look towards banks as interest rates are climbing, and that should make these banks much more profitable when giving out loans. If the US economy continues to go strong, that should drive up loan demand, and therefore profitability for the banks which make up such a huge part of the S&P 500. Ultimately, the market should continue to be noisy, and I believe in buying dips unless of course we were to break down below the 2500 level underneath, which I think is the “bottom” of the overall uptrend, and send this market going much higher. Longer-term, I believe that the 2600 level above is the target, and after the noise is over, I believe that the buyers will return to what has been a very reliable uptrend, and when I look at the hourly chart, you can make an argument for a bit of an ascending triangle. Longer-term, the markets should continue to find plenty of reasons to go higher, not the least of which will be the earnings season, but if the Federal Reserve looks to be on track to meet everybody’s expectations, we should be fine.
S&P 500 Video 12.10.17
This article was originally posted on FX Empire
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