The S&P 500 pulled back a bit during the trading session on Wednesday but found buyers underneath to shoot this market to the upside again. The 3100 level course is a large, round, psychologically significant figure and if we can break above there then it is likely we go looking towards the 3150 handle. Underneath, the 50 day EMA is sitting right around the 3000 level, and I think that is essentially your “floor” in the market. The 50 day EMA is an indicator that a lot of people pay attention to, and it is starting to slope higher. The 200 day EMA sits just below as well and is starting to turn higher as well.
S&P 500 Video 02.07.20
Ultimately, this is a market that I think that if we can reach towards the 3150 level, it is likely that we then go towards the 3200 level. A break above that level then will allow this market to go higher, perhaps reaching towards the 3400 level. I have no interest in shorting this market, and therefore I would look at pullbacks as potential buying opportunities unless of course the jobs number is an absolute disaster, which could potentially be the case but at this point it seems as if Wall Street will find a reason to go long of the market regardless. At this point, the choppiness should continue to push this market to the upside, thereby making that move likely. With the Federal Reserve offering so much in the way of liquidity, stocks will continue to rally.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500 Price Forecast – Stock Markets Continue Slow Grind Higher Into the Jobs Figure
- USD/CAD Daily Forecast – Canadian Dollar Supported By Economic Data
- US Stock Market Overview – Stocks Rise Led by Large Cap Tech; The Russell 2000 Slumps
- Oil Stays Below $40 Despite Significant Crude Inventory Draw
- Natural Gas Price Forecast – Natural Gas Markets Pull Back
- Gold Price Prediction – Prices Drop on Strong ADP Payroll Report