The S&P 500 has pulled back a bit during the course of the trading session on Tuesday to give back some of the gains on Monday. The market is still very much in a bullish trend, and of course we have a major uptrend line underneath, and therefore it is likely that we will see buyers jump in somewhere near that area. Furthermore, we have the 50 day EMA supporting that uptrend line as well. All things being equal, we could then go to the highs again, perhaps looking towards the 4000 level above, which has been my longer-term target for some time. I think that there are enough people out there looking to pick up value and paying attention to the big figure that we will eventually have to visit that level.
S&P 500 Video 03.03.21
When you look at the previous consolidation, as I have mentioned in the past was between the 3200 level and the 3600 level, it measures for a 400 point move higher, suggesting that we were going to go to the 4000 level. All things been equal, this is a market that I think will continue to attract traders on dips, but quite frankly there are a lot of concerns when it comes to higher value, and therefore I think we will continue to see a lot of choppiness, but longer-term traders are going to continue to see every dip as a buying opportunity. The 3800 level underneath could be support as well, and of course the uptrend line just underneath there also.
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This article was originally posted on FX Empire