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The S&P 500 has gone sideways overall during the trading session on Friday, and relatively quiet trading. The volume is a bit low, but we have been grinding sideways over the last couple of sessions, and it looks as if we are going to go higher, perhaps reaching towards the 3000 level is over the longer term. I think that it’s likely that we will continue to see short-term buyers jump into this market every time it dips, as it gives us an opportunity to pick up value. The S&P 500 has been leading the charge for several other indices around the world, and I think that will continue to be the case.
With the weakening US dollar, we have gotten a bit of a boost, so it makes sense that the S&P 500 benefits from cheaper exports, at least that’s the theory. I believe that the bottom of the overall uptrend is the 2500 level, so if we remain above there, I don’t have any interest in shorting as I think eventually the buyers do get involved. If we were to break down below the 2500 level, then I think the S&P 500 will fall apart. I suspect that a lot of the selling recently has gotten some of the “hot money” out of the market, which is always a good thing as a slow and steady gentle grind higher always makes for better investment longer term. I believe that in the short term, the 2675 level is going to offer very strong support.
This article was originally posted on FX Empire
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