The S&P 500 fell hard during the trading session initially on Thursday until we found the 3000 level offering plenty of support. By turning around where we did, the market looks like it is going to obey the 50 day EMA, and the support level.
Sometimes, a large number is far too obvious to ignore. At this point, that number in the S&P 500 would be 3000. The 3000 level has offered enough support to turn things around not only due to the psychology of the number, but also the fact that we have seen the 50 day EMA respected. By doing what we have done, it suggests that we are going to see buyers looking to get involved on dips and eventually try to push this thing back towards the 3100 level, an area that has been interesting to say the least.
S&P 500 Video 26.06.20
Keep in mind that the Federal Reserve continues to liquefy the market, and even though it seemed like the market was falling apart during the trading session on Wednesday, the reality is that the resiliency is still there. Until the Federal Reserve stops bailing out Wall Street, it is difficult to imagine a scenario where the S&P 500 can break down significantly.
They come back and bite the dips time and time again, and until that changes substantially it is difficult to start shorting this market anytime soon. Ultimately, I believe that this is a market that will find plenty of resistance at the 3100 level, an area that has been resistive several times and now we could simply be looking at a back-and-forth type of grinding in this 100 point range or so. If you zoom out a little bit, you can even make out a symmetrical triangle.
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This article was originally posted on FX Empire
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