S&P 500 Technical Analysis
The S&P 500 initially tried to rally a bit during the trading session on Tuesday, but it looks like we are more likely than not to see a bit of a pullback from here and that makes sense, as it has been so impulsive over the last couple of days. That being said, I don’t read much into it other than an opportunity to buy the dip.
The 5,100 level underneath would be a logical place to find support, right along with the 50 day EMA, which sits just below there. This is assuming that we even get a reasonable correction because quite frankly, the stock markets have been very impulsive for some time. And with that, I have no interest in shorting the market. Interest rates in America could climb and that might be what causes a little bit of a pullback here.
I think we’re going back towards the 5300 level. I don’t think that we get the same type of run up that we had a few months ago, but I do think it remains positive in general. After all, Wall Street always has a narrative to buy stocks no matter what’s going on. Perhaps we will see a little bit of rotation out of the leaders and into the broader market, which actually would be a very healthy thing.
We did start to see that a few months ago, which leads to a more sustainable rally. Ultimately though the S&P 500 of course will be decided based upon the performance of a handful of stocks, all of the usual suspects. Dips at this point in time should continue to be buying opportunities and I think there is a bit of a hard floor between the $5,000 level and the $4,900 level.
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This article was originally posted on FX Empire
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