The S&P 500 had a very strong week, wiping out almost all the losses that happened last week. At this point, it looks as if the S&P 500 is ready to go much higher, perhaps reaching towards the 2900 level, possibly even higher than that.
The S&P 500 rallied significantly during the week, breaking above the 2700 level again, and wiping out most of the losses from last week. That’s a very strong sign, and I think that we will continue to go much higher, perhaps reaching towards the 2900 level above. That was the most recent resistance barrier, and I think that if we can break above there, we will finally go to the 3000 level which is the longer-term target that I have. It’s obviously a very significant barrier, and that should cause quite a bit of resistance. Ultimately, I think that the market will try to get there, but it’s going to take a significant amount of momentum to continue to push above there.
The 2500 level underneath is massively supportive, so I think that the market will remain in an uptrend if we can stay above there. That’s not to say we can pull back, obviously we can, but I think that the overall attitude remains bullish, so I have no interest in shorting as the market looks very healthy and after this recent selloff, a lot of the “hot money” is gone now, which is necessary always a good thing. Slow and steady wins the race, and that’s exactly how I suspect that this market will continue to look at things. Currency markets continue to sell off the US dollar, and that of course offers a bit of a tailwind for this market as well, making US exports cheap.
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.