The S&P 500 has rallied a bit in the futures market during the trading session on Friday, but you should keep in mind that the underlying index was closed due to the Labor Day holiday in both the United States and Canada. With that being the case, I would not read too much into the candlestick other than the trend will remain intact. At this point, I think the market is probably going to go looking towards the 4600 level, as the market tends to move in 200 point increments.
S&P 500 Video 07.09.21
Short-term pullbacks at this point in time it is likely that the 4500 level will be tested for support, and if we break down below the 4500 level, then we could go looking towards the uptrend line underneath as well as the 50 day EMA. The 50 day EMA being broken to the downside could open up an opportunity to start buying puts, but at this point in time that is about as negative as you can get with the Federal Reserve looking to manipulate the market. In general, this is a market that I think will continue to find plenty of buyers on dips and therefore am looking for value as we move along.
The market is very likely to continue to find plenty of buyers every time it does drop a percent or two, just as we have seen multiple times along this trend line that has been very much intact for what seems like a lifetime.
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This article was originally posted on FX Empire
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