The S&P 500 went back and forth during the course of the trading session on Wednesday, as we continue to hang around just below the crucial 4800 level. If we can finally take the 4800 level out to the upside, then it is likely that we could go looking towards the 5000 level. Ultimately, this is a market that continues to see a bit of support, despite the fact that the market continues to see noisy behavior. The 50 day EMA sits underneath at the 4652 level and is curling higher, and therefore should offer a little bit of a dynamic floor in this market.
S&P 500 Video 06.01.22
Underneath there, then we have the uptrend line that has been so crucial, and therefore it is likely that dips will continue to be picked up going forward, which makes quite a bit of sense considering that the Federal Reserve might be tapering, but at the end of the day they have Wall Street’s back, and it is a well-known fact at this point in time.
All things been equal, I would anticipate seeing a lot of noisy behavior, but ultimately, we should see this market rally over time. We have the jobs number on Friday which of course will have its say but given enough time I do not think that any pullback at this point in time will be a major problem. Looking at this chart, I think that any time we dip it offers a value proposition that you should probably take advantage of. I have no interest in shorting this market, and I think that the absolute “floor the market” is closer to the 4500 level.
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