- In my daily analysis of the S&P 500, it's obvious to me that the market continues to see a lot of volatility, but it looks like the Americans are going to pick up the ball and carry it to much higher levels.
- Quite frankly, the panic that we had seen in Asia and Europe were overdone, and now it looks like New York is going to turn this whole thing around.
It's probably worth noting that the 50 day EMA was challenged and held as support. I do think that ultimately the market is one that is a little oversold, so a bounce of course always makes sense. And of course, we are still very much in an uptrend despite the fact that everybody was freaking out over the last couple of days.
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Because of this, I think you've got a situation where traders will continue to look for value, and therefore every short-term dip will probably get bought into. GDP in America came out much hotter than anticipated, and that of course suggests that the US economy is stronger than most people think. And therefore, everybody goes back into some of the stocks that had been sold off so brutally as of late.
It's only a matter of time before the uptrend continues, and it might be that Thursday is the day this starts. We'll just have to wait and see. If we break down below the 5,375 level, that would be a very negative turn of events because it would have squashed all of the attempts to recover. But as long as we stay above there, we're still looking pretty positive, and it is a market that I think has been overdone. With this, I am interested in buying at this point in time. I have no interest in shorting the S&P 500, as it isn’t an equal weighted index, so therefore it only takes a few stocks rallying to make things move higher.
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