The S&P 500 continues to find buyers longer term, as the easy money policies in the United States continue to propel assets. The 3200 level continues offer plenty of support and as the Federal Reserve will do nothing to upset the markets during the trading session, it is probably worth noting that we are more likely to go up and down at this point. Even if we were to break down a bit, I think there is plenty of support below at the 50 day EMA which currently sits at the 3111 level.
S&P 500 Video 30.07.20
To the upside, we need to overcome the highs from last week and then I think the market is likely to go looking towards the gap, which is closer to the 3345 level, and then possibly the 3400 level, which of course was the recent all-time high. Ultimately, I believe that this is a market that will find reasons to go higher if you give it enough time, so buying dips continues to work on short-term charts. I believe that longer-term we will not only hit the highs, but we will probably blow through them.
With the massive amounts of stimulus out there, we may get the occasional shock due to economic announcements, but quite frankly as long as “the Fed has everyone’s back”, the longer-term trend is going to remain bullish. That is the catch when it comes to trading indices, you need to understand that they move on liquidity more than anything else. Furthermore, they are not equal weighted, meaning that just a handful of stocks move these markets.
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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