The S&P 500 started out the day rather choppy, but then shot straight through the ceiling as we broke above the 2425 handle. This is a very bullish sign, and it looks as if the S&P 500 is trying to recover a lot of the losses that we have had in the last couple of days. I believe that the 2450 handle above is a barrier that might be difficult to get above, but eventually I think that the buyers will jump in and push above there. Once we do, the market then goes to the 7500 level after that which is a large, round, psychologically significant number. Ultimately, the market could break above there, but it is going to take a significant amount of pressure and probably some very good news from somewhere.
Buying dips
For a while, I have been saying that this is a market you should buy dips and, but it has been very difficult over the last several sessions. The fact that we broke out to the upside during the day on Wednesday suggests that the market is perhaps finally looking cheap and upper people to take advantage of what they see as value. If we broke down below the 2400 level, that would be an extraordinarily negative sign, but I don’t think that there’s any real fear of that happening in the short term. If we did breakdown below there though, I would become massively short of this market and expect a significant break down.
S&P 500 Video 29.6.17
This article was originally posted on FX Empire