As the S&P 500 has pulled back a bit during the trading session on Friday, only to see buyers come in and pick back up. With the US dollar falling it continues to drive money into the stock market as the Federal Reserve will continue to fire up the printing presses. Ultimately, this is a market that I think will eventually try to get towards the 3400 level, possibly even the 3500 level.
S&P 500 Video 10.08.20
The 3200 level underneath will continue to offer a bit of a floor, especially as the 50 day EMA is racing towards there. The jobs number was pretty much in line, so that is not a huge surprise that the market is going to continue to go higher. All things being equal though, by the dips continues to work and I do not see that changing anytime soon. The market has been in an upward trajectory for some time, and although it has been very choppy over the last two weeks, it has been decidedly positive.
It has been a bit of a relentless grind through the earnings season, and that means that we should continue to see plenty of people interested in going long. I like the idea of buying value when it occurs, as we are trying to build up enough momentum to break out to the upside. It will take a significant amount of momentum, but eventually we should get there and go to much higher levels. Shorting is not even a possibility this point in time, so take advantage of value when it occurs as it will from time to time.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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