The S&P 500 has been relatively choppy during the trading session on Thursday, as we got a slightly better than anticipated continuing claims number coming out of the United States. That being said, the official job summer comes out on Friday and that of course will attract a lot of attention. With that being the case I think it is only a matter of time before we continue to the upside, mainly due to the stimulus that is out there.
S&P 500 Video 07.08.20
If Washington DC can get it together and agree to some type of stimulus package, that will probably throw the S&P 500 towards the all-time highs again, and quite frankly that is probably yet another thing that the market is paying close attention to. With that being said, I like the idea of buying dips going forward as I believe 3400 will almost certainly be attempted. The markets continue to be very volatile, but well supported by the Federal Reserve.
To the downside I see the 3200 level has been massive support, so any pullback to that area, perhaps even after the jobs number, could be a nice buying opportunity as the “initial knee-jerk reaction” quite often end up being the wrong move. I have no interest in shorting this market, I simply look for buying opportunities as they appear. Longer-term, I think we not only reach the highs but break towards the 3500 level given enough time. As long as the Federal Reserve is willing to prop up Wall Street, Wall Street will continue to buy stocks.
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This article was originally posted on FX Empire