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S&P 500 rallies slightly during the trading session on Wednesday as buyers continue to return

By:
Christopher Lewis
Updated: Apr 19, 2018, 04:53 UTC

The S&P 500 rallied a bit during the trading session on Wednesday, as we continue to show signs of buying every time we pull back. I think that the market should continue to see plenty of volatility, but it does look like we are ready to go higher.

S & P 500 daily chart, April 19, 2018

The S&P 500 has been slightly positive during the trading session on Wednesday, as we continue to hang above the 2700 level, an area that is going to be psychologically important. Beyond that, we could continue to go higher, perhaps reaching towards the 2800 level. I think that every time we pull back, it’s going to be attractive to value hunters, which I believe will continue to drive this market higher. I don’t think that the market is going to continue to be easy to deal with, but I do think that the upward proclivity of this market is something that should not be ignored. If we can stay out of some type of trade war, and of course can keep the Americans out of Syria, that should help this market go higher.

Beyond that, corporate earnings have been strong so far, and that of course helps the S&P 500 as well. I suspect that the markets will continue to look at the 2680 level as the bottom of the 2700 support region, so I like the idea of buying short-term dips, trying to build up a larger position for the longer-term move. I believe that we not only go to the 2800 level, but by the end of the year I would not be surprised to see this market reach the 3000 handle. Ultimately, this is a market that should go higher, but it’s likely to be easy so I would build my position slowly.

S&P 500 Video 19.04.18

About the Author

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.

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