The S&P 500 rallied a bit during the trading session on Wednesday as the 3100 level looks to be offering support, just as the 50 day EMA underneath is. Ultimately, I do think that the market probably goes higher, reaching towards the 3200 level based upon the bullish triangle underneath. Overall, this is a time year the typically works out well for stock markets anyway, as the money managers out there look to pad results for clients.
S&P 500 Video 05.12.19
Looking at this chart, it’s obvious that we are in an uptrend, and that significant selloff has of course caused a bit of nervous chatter, but at the end of the day it looks as if the market continues to go higher. The comments coming from Donald Trump did not help the situation, but quite frankly at the end of the day it’s the Federal Reserve that supports the market, not the US/China trade situation. As long as the Federal Reserve is willing to step in and help the market along, it will continue to do what is done over the last 10 years, rally. That doesn’t mean that you can jump in right away, but with that being the case, wafer pullbacks might be the best way to go, unless of course you can peel into the position with a smaller size. We can even break above the 3200 level that I mentioned, and if we do it will be a bit of a “blow off top” in my estimation. I believe that the 3030 level underneath continues to be a hard “floor” in the market extending down to the 3000 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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