The S&P 500 initially tried to rally during the trading session on Monday, but then broke down significantly to reach towards the 3100 level. This is an area that has shown a lot of support, and therefore it would not surprise me at all to see this market bounce from here. Even if it does break down, the 50 day EMA underneath at the 3050 level will be rather supportive as well. This is a market that is bullish and quite frankly this time year we typically do have a lot of buying pressure, due to the so-called “Santa Claus rally.”
S&P 500 Video 03.12.19
The markets continue to be very bullish longer-term, but the occasional pullback is probably necessary. Quite frankly this is a market that should continue to be thought of as one that you can only go long of, so wait for a supportive bounce to get involved. Quite frankly, there is a massive amount of support not only at the 50 day EMA but also the 3000 level below there. The target has always been 3200 based upon the ascending wedge that was broken out of recently, and therefore I still believe that we have plenty of room to go. It’s the beginning of December, and there will be a lot of “catch-up trading” for the next couple of weeks, and therefore it’s likely to continue to go to the upside. Quite frankly, I have no scenario in which I’m going to start shorting this market if we are still above the 200 day EMA which is currently trading at the 2936 handle.
This article was originally posted on FX Empire
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