The S&P 500 has gone back and forth during the trading session on Tuesday as we continue to see a lot of choppiness as the earnings season continues to cause volatility. With that being the case, we still look at the longer-term attitude of the markets will be making your trading decisions, and at this point I think it is obvious that we are still very much in an uptrend. I look at short-term pullbacks as an opportunity to pick up a little bit of value, as the Federal Reserve will keep the markets very liquid in order to make them will go higher.
S&P 500 Video 29.07.20
While the Federal Reserve explicitly says that they do not care about the stock market, it is a matter of watching what they do and not what they say. Every time the stock market falls with any type of velocity, the Federal Reserve steps into ease monetary policy even further. With all of that, it is likely that the market is likely to go looking towards the gap above and then perhaps the 3400 level over the longer term.
I think there is a ton of support underneath, especially near the 50 day EMA. Below there, then we have the 200 day EMA which is right at the 3000 level. It is not until we break down through all of these levels that I would be concerned about the overall uptrend. Buying the dips has worked for quite some time, and as long as the Federal Reserve monetary policy continues to be the same, I do not see that changing anytime soon.
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This article was originally posted on FX Empire
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