- The S&P 500 rallied to kick off the trading session on Friday, but has shown itself to be a little bit negative as we continue to see the 7,000 level offer a significant barrier.
- All things being equal, though, this is a market that I do think has plenty of buyers underneath it.
- As we start to head closer to earnings season for a lot of the major players, that will start to grab focus.
There are some concerns out there about the situation in Iran and some other geopolitics, but the reality is that, at the end of the day, the market is still very much a positive one. I think there are plenty of people willing to get involved in dips as it offers value.
The market currently sees the 50-day EMA at 6,850. It is rising, so I look at this as a market that has plenty of support not only there, but at the 6,800 level.
Breaking the 7,000 Level
Over the longer term, I fully anticipate that the 7,000 level will be broken and we will continue to go much higher as the US economy has been relatively strong.
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Foreigners own a larger amount of US stocks than at any other time in history, and I do believe that those inflows continue.
Once we break above the 7,000 level, my initial target will be 7,300 based on the latest swing higher. But I recognize right now, there is just a general malaise to the market, perhaps waiting for that earnings season to kick off.
Keep in mind, Monday is Martin Luther King Jr. Day in the United States, so the underlying index won't really be moving. But right now, the analysis remains very choppy and sideways.
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