- The S&P 500 did pull back just a bit during the early hours on Tuesday. As we continue to wait for whatever the FOMC is going to do.
- A lot of traders I don't care, of course, are concerned about the potential of the market staying tighter for longer.
But I think at this point we are starting to see a situation where traders are focusing on earnings and employment actually being good. It's a push and pull time for the situation. But from a technical analysis standpoint, this is a market that looks very strong. We have simply been going back and forth recently after shooting straight up in the air.
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Catching Our Collective Breath
We probably need to catch our breath. And the FOMC meeting is reason enough to take a moment. The 5300 level underneath continues to be a major area of interest. And if the market were to pull back to that area, I think a lot of people would look to get long again. If we can break above the recent highs from Friday of last week, then the market could go looking to the 5500 level.
All things being equal, the 5500 level is an area that I think a lot of traders are aiming for later this summer. And then of course, it is more likely than not an area where we would see a lot of options trading. So, it does become a little bit of a magnet for price. If we do break down below the 5300 level, then you have the 50 day EMA underneath offering significant support as well.
So, with all of that, I do think that it is only a matter of time before the S&P 500 buyers come in and take this market by the reins again and push it much higher. That’s been the way this market has behaved for what seemed like a lifetime, and I just don’t see anything on the chart that suggests it will be anything different over the next couple of sessions. Because of this, I’m looking for buying opportunities.
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