The S&P 500 has rallied quite nicely during the week, making fresh, new highs yet again. The market continues to attract a lot of money due to the fact that money is flowing into America by default. The European Union is still very soft, and of course the Federal Reserve is willing to back the markets. As long as they increase their balance sheet, this market will go higher. They have already stated that they are willing to do so and not so many words.
S&P 500 Video 20.01.20
Now that we have cleared the 3300 level, it’s very likely that the S&P 500 is going to go looking towards the 3500 level. At this point, I like the idea of buying pullbacks because they offer value. The 3200 level is a short-term “floor” in the market. This is an area that had previously been resistance, and it has already been tested a couple of times now. It looks very bullish, so at this point it’s likely that we will see value hunters in that area. Furthermore, if we break down below that level, it’s likely that the 3000 level will offer quite a bit of support as well. The 50 day EMA is close to the 3000 level, an area that of course has a certain amount of psychological support and interest as well. If we were to break down below there, then I would have to re-assess the entire situation. Until then though, I think that pullbacks continue to offer quite a bit of value the people are more than willing to take advantage of.
This article was originally posted on FX Empire
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