The S&P 500 continues to see a bit of buying heading into the weekend, as we are looking at a market this accepting the inevitability of a rate hike on Wednesday next week.
S&P 500
The S&P 500 rallied pretty significantly during the trading session, gaining roughly 1% on Friday. This is interesting considering that the CPI numbers came out hotter than anticipated.
This tells me that traders have accepted the fact that there is going to be an interest rate hike coming out of the Wednesday session from the Federal Reserve. Ultimately, we have seen support come back into the picture at the 7,600 level, which was a resistance barrier, and market memory opens up the possibility of a bounce with the 50-day EMA.
Top Regulated Brokers
This is a bullish market and continues to be so.
Overall, the market is likely to continue to see dips as a buying opportunity, and I do think that the market could go looking as high as 7,800 and still be in the same overall sideways chop.
This is a bullish market and continues to be so. The Friday session gave me a lot of hope because, quite frankly, with oil pulling back a bit, you have seen just how much that has influenced the market. Oil rallying has put pressure on the S&P 500, just as oil dropping has sent upward pressure.
The 4.95% 10-year yield is a significant sign of potential distress, but what is important is that we have, in fact, seen the 10-year yield kind of back away from that psychologically important 5% level. Ultimately, this just looks like more of the same, of the bullish kind of grind higher.
It is a somewhat quiet time of year, although we are getting pretty close to when money, seasonally at least, tends to reenter the picture. We are in an uptrend. The 50-day EMA holding is a good sign.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from