S&P 500 Forecasts: New Momentum
The S&P 500 pulled back somewhat to kick off the trading session on Thursday, but turned to see buyers gain the upper hand. Support for the 50-day EMA offer is nothing new to this market, and if you recall from yesterday’s video, I said that this market tends to fall below the EMA. 50 days before turning around. With that in mind, it is obvious that we are just repeating the same pattern that we have been in for some time, and it is likely that this will continue to be the case in the future.
What I find interesting is that we have breached the 4100 level, and therefore it is likely that the market will then look towards the 4200 level. The 4200 level is a major resistance barrier on which we are we’re out, and I think the market has become cheap enough to attract some money. That being the case, the market is likely to see further momentum, and I think we will not only see the 4200 level broken, but I think that should send this market higher.
On the downside, the 4000 level continues to offer support alongside this huge spread just above it. At the end of the day, it’s a market that I think can only be bought on dips and so I have no interest in trying to bypass it. In addition, the liquidity measures that the Federal Reserve will almost certainly continue to inject into the market should push this index higher. After all, the same manual has been in effect for quite some time, as the fear of inflation during the day Wednesday was just a spot on the radar, and the Federal Reserve is not going to tighten monetary policy. anytime soon, so with that in mind, I think this continues to be a scenario where you buy the dips and add as we go up. 4500 is my longer term goal and I think it’s only a matter of time until I get there, but that’s probably an argument for some time this summer and not the next few weeks. Granted, volatility will continue to be an issue, but we are in a very strong uptrend despite what the past two days had been like.