Short-term pullbacks I think, open up the possibility of offering nice buying opportunities in all three major US indices.
The Nasdaq 100 looks as if it is trying to recover here in pre-market trading on Friday, but let’s keep in mind that volume, of course, is going to be pretty anemic. I wouldn’t read too much into it other than it would be a continuation of the longer-term trend.
Short-term pullbacks, I think, open up the possibility of offering nice buying opportunities, especially near the 50-day EMA and then again at the 25,000 level. To the upside, the 26,000 level is a little bit of a psychological barrier, but I really don’t see it being a major issue to get above by the time it’s all said and done.
The Dow Jones 30 looks like it is hanging around the 48,000 level and collecting more buyers as we have rallied slightly in the early part of the session. Given enough time, I think we’re probably going to try to get that big psychological number of 50,000.
It seems like a lot, but it’s really only a few percent higher. It may take some time to get there; I would expect it to be something that we’re talking about weeks down the road. But with that being said, I think we have a situation where even if we do break down from here, the 50-day EMA and the 47,000 level both offer major support.
The S&P 500 looks like it is going to rally again, and I think this is another situation where the traders are eyeballing large, round, psychological targets. This one, of course, would be 7,000. Currently, the 6,800 level offers a certain amount of support with the 50-day EMA sitting right there as well.
With that being said, I think you have a situation where you remain buy on the dips, and eventually we do get that push higher. Really, at this point in time, I’m not overly concerned about the S&P 500’s trend until we break down below 6,500, something we’re nowhere near doing at the moment. Therefore, I remain bullish. I do think we eventually get that 7,000 level.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.