The stock markets were very mixed during the Friday session as we got conflicting economic reports out of the United States. Quite frankly, I think a lot of this comes down to the market being a bit exhausted, and of course being a bit cautious about carrying risk into the weekend.
Don’t get me wrong, I am bullish of the S&P 500 but I also recognize that as we go into the weekend with the bevy of potential headlines out there just waiting to happen, it makes a lot of sense that traders would be cautious about putting a lot of money to work. I think at this point, we are probably going to look at the 2900 level underneath as support, and barring some type of negative headline, that should continue to hold. I do like buying dips in the S&P 500 more than anything else right now, simply because there’s so much fear out there.
Longer-term, we could go to the 3000 level, but we need the next catalyst higher. I think that would be in agreement between the United States and China. In agreement between the United States and Canada could be the next short-term catalyst, but the real prize is China. I look at pullbacks as ways to take advantage of value in a market that is obviously bullish, and don’t have any interest in shorting whatsoever. Below the 2900 level, I also see the 2890 level in the 2880 level as both areas of support, so I’m simply waiting for value to present itself so I can take advantage of it. Longer-term, I think that the buyers will continue to run this market, because quite frankly every time it looks as if we are ready to roll over the market will get saved.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.