The S&P 500 has been very noisy over the last several sessions, but Friday was a continuation of the buying pressure that we had seen for some time. It currently looks as if market participants are favoring the upside and buying the dips. The 2750 level above is going to cause a little bit of resistance, but it’s obvious that the 2700 level has brought a lot of value hunters into the mix.
There are a lot of concerns when it comes to trade wars and the situation geopolitically around the world, but at the end of the day it appears that risk appetite is still out there. Overall, I think that this market will probably go looking towards the 2800 level over the longer-term, but it’s going to take some time to get there. If we do break above that level, the uptrend will continue, and we will go much higher.
I would anticipate a lot of volatility; the markets are trading on pure emotion right now and not much more than that. One day everybody’s fine, the next day it’s the end of the world. In these conditions, it’s very difficult to trade so keep your position size small and cut yourself a break as whipsaw type of trading will be more common than not. However, it certainly looks as if we have a significant floor in place near the 2700 handle, something to pay attention to.
S&P 500 Video 02.07.18
This article was originally posted on FX Empire
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