The S&P 500 has rallied during the trading session on Friday to reach towards the 4400 level, in a continuation of the massive uptrend that we have been and for what seems like forever. The massive selloff that we have seen on Monday has been completely wiped out and then some, and in fact it was almost as if it never happened. With that in mind, it looks like we will eventually break above the 4400 level and go looking towards the 4500 level next. Remember though, the market does tend to respect these big figures I think 4500 could cause a little bit of noise in the short term. Beyond that, I look at pullbacks as a potential buying opportunity that I can take advantage of.
S&P 500 Video 26.07.21
Underneath, we have the 50 day EMA and the uptrend line both coming into the picture offering support, near the 4250 level. I do think that there will be plenty of buyers between here and there, but even if we did break down below there it is very likely that the “floor the market” is actually closer to the 4000 level as the 200 day EMA is reaching there, it is a large, round, psychologically important figure, and of course there is a slight gap there that has yet to be filled in the futures market. If we did break down below there, might be a buyer of puts but that is as bearish as I get with the US indices as they are so highly manipulated. With that being the case, look it dips as buying opportunities just as a significant break above the 4400 level might be.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
