The S&P 500 has pulled back a bit during the trading session on Thursday but have found buyers to turn things back around and show signs of resiliency yet again. The S&P 500 is reaching towards the 3400 level, and I think at this point it’s only a matter of a couple of days before we get there. If we break above there, then we start looking towards the 3500 level yet again. Underneath, there is a massive amount of support due to the uptrend line and the 50 day EMA moving in parallel, so at this point I think the only thing you can do is by the S&P 500 every time it offers value.
S&P 500 Video 14.02.20
If we were to break down below the 50 day EMA on the uptrend line it would be a rather negative turn of events, but just below there we will have the 3200 level offering support as well. At this point, the market is one that you cannot short because the Federal Reserve has reiterated that it is willing to add liquidity as much as they need to, and that’s essentially Wall Street knowing that the Federal Reserve has its back.
It dips are to be thought of as value and should be treated as such. I think that the 3400 level could offer a little bit of resistance but it’s only a matter of time before a breakthrough there. It’s possible that we may get some type of significant pullback, but I would be shocked a bit if we saw more than the 5% pullback it anytime this year.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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