The S&P 500 had a volatile session on Monday, as we initially took off to the upside but ran into trouble due to the disappointing US Core Durable Goods announcement coming out. This of course sold off the market but as I look at this chart, it’s obvious that the buyers have come back into play, and it now looks as they are trying to let this market yet again. Were in a longer-term uptrend, and I believe that the market is going to go looking for the 2500 level given enough time. I also believe that the 2400 level underneath offers a bit of a floor, and because we are above that level I have no interest in shorting. I believe that these dips are value, and I think that the rest of the trading community is seeing the same thing late in the trading session.
2450
I believe the 2450 is massively resistive, but if we can break above there, I believe that then we are free to go to the 2475 handle, and then eventually the 2500 level. Earnings season has been reasonably good, and I believe that the markets continue to see a significant amount of bullish pressure underneath, and the 2500 level above will be resistive, but I believe given enough time we will break above there as well. Once we do, then the next target would probably be 2550 or so.
It’s not until we break below the 2400 level that I would be a seller in this market, and I don’t think that’s going to happen anytime soon. There continues to be massive amounts of reason to go long, if nothing else just simply because we have a low interest rate environment. I believe that most of Wall Street doesn’t believe that the Federal Reserve will continue to raise rates, and that of course means good news for stocks.
This article was originally posted on FX Empire