The S&P 500 has gone back and forth during the trading session on Friday as we continue to see a lot of grinding. Ultimately, the 3400 level above looms large and it looks like we will have to find some type of catalyst to get there. With the rising US dollar during the trading session on Friday, we have seen a bit of hesitation. However, we are still very much in an uptrend and it would make sense that we killed some time in this general vicinity in order to build up the necessary momentum to smash through the clearly obvious barrier. I think at this point in time we will break above there and go looking towards 3500 eventually. That does not mean we cannot pull back in the short term though.
S&P 500 Video 24.08.20
If we do pull back, I will be looking at the 3350 level as a potential buying opportunity, just as I will be looking at the 3300 level. Underneath there, I think there is a huge “floor” in the market closer to the 3200 level. This is an area that was previous support, and it is now being supported by the 50 day EMA as well. That being said, the market is likely to find plenty of value hunters going forward, unless of course there is some type of shock which of course is always a possibility. Looking at the overall attitude of the markets, I still believe that it remains a “buy on the dips” type of scenario in general. Looking at this candlestick, it tells me that we are simply killing time right now.
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