- It's easy to see that there is plenty of strength in this asset as we have turned around and completely during the session, especially as the PPI numbers came out four times hotter than anticipated.
- Remember, the Thursday session was a bit of a train wreck as traders tried to focus on the idea that we might see a massive rotation in the stock market in the United States.
As rates plunged and it looked like people were willing to throw money hand over fist at small caps and other places like that. There was a lot of profit taking in the big handful of stocks that everybody owns. But it looks like today, on Friday, we've seen buyers come right back into those stocks as we continue the overall scenario. This is a market that continues to see a lot of noise, and therefore you will have to be cautious, but it is clear that strength is the norm now.
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Buyers on Each Dip
With this being the case. I think this is a situation where you continue to find buyers on every dip. And therefore, I think we have a situation where the 5500 level is the flaw in the market. But recently we've seen the 5600 level offer a lot of support as well. So that does come into play. Also. Quite frankly, it's almost impossible to short stocks right now in the S&P 500.
Remember is not an equal weighted index. So, it's just the same handful of stocks that continue to push this market higher. Quite frankly if Nvidia, Apple, Microsoft and all the usual suspects rally, so does the S&P 500 and the Nasdaq 100 for that matter. In general, this is a market that I think continues to see upward pressure. And it would not surprise me at all to see it hit 5700 sometime next week.
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