The S&P 500 has gone back and forth during the trading session on Tuesday, as we continue to test the 3300 level. With that being the case, the market looks as if it is ready to break out given enough time but I think what we are looking at this market as one that is a little bit overextended, so at this point we could see a pullback in order to offer a buying opportunity. That buying opportunity should present itself as one that you should take advantage of, especially near the 3200 level if we were even get that low. A break above the 3300 level could send this market towards the 3500 level.
S&P 500 Video 15.01.20
If we were to turn around a break down below the 3200 level, it’s very likely that the 50 day EMA would come in and push this market to the upside. That being said though, it’s very unlikely that we get down there, or even break down below it. The stock markets continue to rally based upon better than anticipated earnings, especially during the Tuesday early morning hours as J.P. Morgan and Citigroup both beat. Ultimately, this is a market that is going to go higher and pullbacks will continue to be thought of as buying opportunities due to not only earnings, but the fact that the Federal Reserve is on the sidelines and willing to liquefy the markets as long as it takes. All things being equal, I have no interest in shorting this market and I don’t even have a scenario where I’m getting ready to do so.
Please let us know what you think in the comments below
This article was originally posted on FX Empire