S&P 500 Technical Analysis
The S&P 500 initially tried to rally overnight in electronic trading but gave back those gains rather quickly as we started to head towards New York trading. Nonetheless, this is a market that is very bullish, and I think actually is in the midst of forming a small bullish flag. The 5500 level above will continue to be psychological resistance, but I do think eventually we blow through it.
We have some notable earnings calls coming, but really at the end of the day, this is a market that’s moving on momentum. And we are trying to at least get away from Nvidia being the entire stock market, but we’ll see whether or not that actually holds. Even if we do fall from here, the 5300 level underneath could be massive support. After all, it’s an area that’s previously seen resistance, so there should be a certain amount of market memory there, and it’s also where we see the 50-day EMA.
In general, this is a market that I think continues to find plenty of value on these dips. So, I look at this as the market offering value that you can take advantage of. That doesn’t mean you jump in with a huge position. It just means that you continue to add on dips until the trend changes. And right now, the trend looks like it’s nowhere near changing. So, with that, I remain positive about this market, no matter what happens in the short term.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
