- The S&P 500 initially pulled back a bit during the course of the trading session on Thursday, but it looks like the 5,875 level is going to continue to offer support.
- If you look at the last three days, we've seen the market bounce from this area, and I think that's a good sign.
- We are in an uptrend anyways, so it all ties together for just simple trend following, although it is a bit noisy.
Keep in mind that Friday does have the PMI numbers, both manufacturing and services, coming out of the United States, as well as other major economies like France, Germany, the United Kingdom. So that will have somewhat of an effect, but we're also in the midst of earning season. And although Nvidia was a little bit of a disappointment, it's really not rattling the market too much. The fact that the Ukraine war is evidently starting to expand a bit as far as what they're allowing doesn't seem to be affecting the market.
Interest rates don't seem to be affecting the market. Now, there will come a point where all of this probably causes some headaches, but this is one of those markets that just seems to be ignoring a lot. And when it does, all you can do is just follow it.
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Buying the Dips Seems to be the Way Forward
I think short-term pullbacks continue to get bought into, but I do recognize that the 6,000 level above is a significant barrier. We need to see a daily close above there for the next leg to kick off. I don't think that happens on Friday, but we might make another run towards 6,000. If we pull back somewhere around that 5,875 level, we should see buyers. Underneath there, we have the 50-day EMA hanging around the 5,800 level, which also, I think, offers quite a bit of support. So, this is a long only market from what I see.
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