The S&P 500 rallied significantly during the trading session on Monday to kick off the week, breaking above the top of the Friday candlestick. Ultimately, the market is likely to go looking towards the 3200 level. If we can stay above 3150 on a daily close, that would be the sign that we are going to continue to go much higher. The ISM Nonmanufacturing figures came out at 57.1, better than the anticipated 57.
That gave US stocks a bit of a boost, just as the Chinese rallying overnight kicked off the day on a positive note in the European Union. Ultimately, I think that the market is likely to see a lot of volatility, but if we can stay above that closing price, the 3200 level will be the most obvious target. That is an area that has seen a lot of selling pressure and even quite a bit of volume, so it will be interesting to see whether or not we can get above there.
S&P 500 Video 07.07.20
If we do though, that will almost certainly send this market looking towards the highs again. If we pull back from there, then we probably go looking towards the 3150 level for buying opportunities. If we break back down below 3150 before the close, there is still plenty of support below at the 3000 level that should keep this market afloat. With the Federal Reserve throwing money as fast as they can at Wall Street, it is really difficult to imagine stock markets melting down without massive negative headlines coming out.
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This article was originally posted on FX Empire
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