The S&P 500 has fallen a bit during the trading session on Friday, testing the 3000 level for support. Ultimately, this is a market that is overdone, so I think a little bit of a pullback would make quite a bit of sense. There is significant resistance between the 3000 level and the 3100 level, so to think that we will simply shoot through the top is probably asking quite a bit. Furthermore, we continue to get extremely poor economic figures so one would have to think sooner, or later Wall Street will realize that the customer does not have a job.
S&P 500 Video 01.06.20
In the meantime, it looks as if it is a “buy on the dips” type of situation, and therefore it is not until we break down below the 200 day EMA that you can change your overall attitude. If we do get that, then it is time to start reevaluating the entire situation. If we break above the top of the shooting star from the Thursday candlestick, then we could go looking towards the 3100 level but that is not going to be easy to do due to the fact that there is so much noise between here and there.
That being said, it is likely that we will pull back a bit in the meantime, thereby offering opportunities for both sides of the equation. Quite frankly, I would not risk too much in this market right now because it is doing a lot of “whistling past the graveyard.”
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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