Stock markets around the world fell rather hard during the week at various times, and of course the United States wasn’t any different. However, you can see by the weekly candle stick we have seen buyers underneath and it does look like it’s trying to survive.
The S&P 500 has fallen during most of the week, reaching down towards the 2800 level. That is an area that could cause some issues for the market if we break down below, so the fact that we bounced from there so stringently is a very good sign. We are forming a hammer just as we formed a hammer during the previous week, and that shows just how resilient this market truly is. At this point, it looks as if the 2900 level will be targeted, and if we can break above there it’s possible that we could go to the 2950 level.
At this point, even though there are a lot of global headwinds out there, the S&P 500 is impressive in its resiliency, regardless of which side of the equation you are on. Simply put, it really doesn’t matter what you think the market “should do”, the reality is that the buyers continue to come back into this market. You can choose to either be “right”, or profitable. I would say the same thing if we break down below the 2800 level, as it should send this market much lower. If that happens, it’s very likely that we will see a bit of a flush lower. However, it looks as if there’s nothing we can do but buy this market until the market tells us something else. A break above the 2950 level finally opens the door to the 3000 handle, which coincidentally is a target for a lot of Wall Street insiders.
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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.