The S&P 500 fell a bit during the trading session on Thursday, reaching down towards the 3300 level. That of course is a large, round, psychologically significant figure, and therefore it should be paid attention to. If we break down below the 3300 level, it’s likely we go down to the 3250 level, and then perhaps the 3200 level. That area also features previous resistance and support, as well as the 50 day EMA. If we were to break down below the 50 day EMA it’s likely that the market will then go down to the 3100 level, perhaps even lower than that.
S&P 500 Video 24.01.20
All things being equal though, this is a market that probably won’t even reach those levels, so I’m looking for signs of a bounce to continue going forward. At this point, the market would then go looking towards the 3500 level over the longer term. Overall, this is a market that I believe in looking for value, and I think that a lot of people out there will feel the same way. It is a bit overextended, and at this point it is a little bit overdone. Looking at the trajectory of this market, it’s obvious that there is a lot of buying pressure underneath should continue to go much higher. All things being equal, the market is one that cannot be sold for any significant amount of time so it’s simply easier to buy value as it occurs on dips. All things being equal, this is a market that has plenty of momentum underneath, so therefore it should be respected.
This article was originally posted on FX Empire
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