The S&P 500 initially tried to rally during the trading session after gapping lower on Friday, but quite frankly this would have been in very low volume type of environment, as the majority of Americans were away for the Thanksgiving holiday. At this point in time, the market is very likely to continue to see a lot of volatility based upon the lack of volume and therefore it’s likely that the candlestick can be ignored. Quite frankly, we have been in a very strong uptrend and there’s no reason to think that will change.
S&P 500 Video 02.12.19
The US/China trade talks continue to be a major issue, and at this point in time it’s likely that as long as we get good news or at least not bad days, this market will find plenty of buyers in the so-called “Santa Claus rally”, as the time of year typically has money managers jumping into the marketplace in order to take advantage of building up the stats for the year that they report to their clients. The 3100 level underneath should be massive support, and I think that that level should be rather difficult to break through. The 50 day EMA underneath should also offer support, as will the 3000 level. All things being equal, we should have plenty of buyers jumping into this market given enough time. Keep in mind that the last couple of weeks of the year tend to be very extreme, but clearly we have a directionality to this market should not be ignored.
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This article was originally posted on FX Empire
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