$SPX500USD US500 Continue to Build Upward PressureOANDA:SPX500USD
We will have choppy times ahead.
Target 4600
Above 4600 Vey Low Volume
The sentiment is positive
4060 is support
Technically
Higher Highs Lower Lows
We are slowly leaving the current ange
The ranges are increasing
The S&P 500 has rallied rather significantly during the course of the week to break above the 4200 level, showing signs of extreme strength. At this point, the market looks as if it is going to threaten the 4300 level above, an area that has previously been resistance. We have seen a lot of noise over the last several months, but the resiliency of the market is something that you have to pay attention to. As long as the market stays this resilient, it will be difficult to short anytime soon. The candlestick seems as if it is trying to tell us that the market has made up its mind finally, and that it decided that it’s going higher.
If we can break above the 4300 level, then this becomes more of a “buy-and-hold” situation, but you can see that the gains have been hard won. With that, I think you get a situation where you are probably better off looking for short-term dips that you can take advantage of, as they offer value in what is becoming a very aggressive uptrend.
That being said, if we were to turn around a break down below the 50-Week EMA could send the market lower, perhaps back down to the 4000 level, and even down to the 200-Week EMA which is currently near the 3770 level. However, it’s probably worth noting that momentum is definitely not on your side if you are going to take this position, and therefore you are probably better off looking for a move to the upside but expecting a lot of volatility. Keep in mind that the S&P 500 is not equally weighted, so it’s just a handful of stocks that make the difference.
