- The S&P 500 initially pulled back just a bit during the early hours on Friday, only to turn around and show signs of life.
- All things being equal, this is a market that's doing everything it can to break above the 6,000 level, which of course is a large round psychologically significant figure.
- The fact that the market is trying to break above the 6,000 level to me suggests that we are going to continue to see money flying into Wall Street. And with this, I think you have to look at it through the prism of a market that you cannot short the index.
I think it's probably only a matter of time before we see some type of attempt at a longer term uptrend. And who knows at this point in time, if we pull back from here, I think there are plenty of buyers at multiple levels underneath such as the 5,880 level. That's an area that previously had been significant resistance. So, I do think that there is a certain amount of market memory, they're just waiting to happen. This is often the case in this market, and right now could be the same now.
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Looking to Find a bit of Value
With that being the case, I like the idea of trying to find value if and when we can, but if we clear the 6,000 level and can hover above there, then I think we may enter a little bit of consolidation before we continue to go higher. I have no interest in selling the stock market. It has clearly shown itself to be far too resilient to get short of this market. And really, it's not until we break down below the 5700 level that you'd have to worry. After all, the 50-day EMA sits right about there as well, and that of course attracts a lot of technical traders also. With that being said, I remain bullish of the S&P 500.
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