S&P 500 Price Forecast – Stock Markets Continue to Rotate
The S&P 500 went back and forth during the trading session on Wednesday, as we are trying to decipher whether or not the market can go higher. Ultimately, it most certainly will but there seems to be a bit of rotation between sectors in the stock market, so it makes quite a bit of sense that we may see the index itself kill time in this area. Furthermore, we have just made a relatively strong break out, so that also favors a bit of recovery time in order to build up the necessary momentum.
S&P 500 Video 23.07.20
We are in the midst of earnings season so that is something to pay attention to, as it will cause a certain volatility adjustment. Ultimately though, this is a market that is rallying based upon the Federal Reserve, so it is difficult to imagine a scenario where we break down for a bigger move. The 50 day EMA underneath as support is how I am looking at this chart, so any time we dip I am buying value as it occurs.
To the upside, I believe that we will go looking towards the 3240 area, which is roughly where the gap is from previous trading, and beyond that we have the 3400 level which is the all-time high, which obviously will be a target for longer-term traders. The trend does not change until we break down below the 3000 handle, so as long as we can stay above there, I have to look for buying opportunities. A simple matter of waiting for the opportunity is the best way to make profits in a grinding uptrend like this.
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