The S&P 500 gapped to kick off the trading session on Monday, reaching lower than the Friday close. However, we have found plenty of support to turn around and show signs of life again so that is a good sign that the 3000 level will continue to attract a lot of attention. Furthermore, we have the 50 day EMA right there at the 3000 handle, with the 200 day EMA underneath by about 30 points. This creates a bit of a “buffer zone” in the market, so therefore it could create a bit of a floor as well.
S&P 500 Video 30.06.20
I believe that the S&P 500, barring some type of extreme negativity or headline, could try to reach back towards the 3050 level, perhaps followed by the 3100 level, and maybe even the 3150 level. It is not that I am necessarily bullish of the economy or any particular companies, it is just that I see a massive structure of buying pressure underneath.
With that in mind, it does make sense that the order flow will dictate that we try to bounce. In fact, I do not really have a comfortable area to short this market until we are well below the 2800 level. I see far too much in the way of noise between here and there, so I am looking for buying opportunities, despite the fact that I think this market has no business being up here. After all, “price is truth”, and as one of my favorite mentors has recently told me again, “embrace the stupidity.”
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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