S&P 500 Index Forecast September 10, 2012, Technical Analysis

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The S&P 500 index had a very strong showing on Friday as the continuation of bullishness from Thursday was evident. This was more than likely based upon the acknowledgment that the Federal Reserve is about to start easing its monetary policy again, as the jobs number in the United States came out so poorly. This should lead to the reflation trade for a while, and as such the S&P 500 could find itself at 1500 and the relatively short order.

We prefer to play the S&P 500 for directional perspective, meaning that we would either by futures or the SPY index ETF. As far as picking out particular companies, there is a lot of noise out there right now and it may be a bit difficult. We are currently at the top what looks to be some type of channel, but we have broken out horizontal resistance, this is why we believe that we are about to accelerate the move higher and would be it additionally convinced if the channel gives way as well. However, if we pulled back a little bit we certainly are willing to buy on the first signs of support as long as we are above 1400.

S&P 500 Index Forecast September 10, 2012, Technical Analysis

S&P 500 Index Forecast September 10, 2012, Technical Analysis

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About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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