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S&P 500 very volatile ahead of the weekend

The S&P 500 was very volatile on Friday, ahead of the big Memorial Day weekend in the United States. The CFD markets might be open on Monday, but quite frankly the underlying S&P 500 won’t continue trading until Tuesday.

The S&P 500 fell drastically during the trading session on Friday, reaching down to the 2716 level before bouncing again. We are heading into the Memorial Day weekend, so any type of pullback would have been more than likely attributed to traders taking profits before the weekend. We have been in a range of 40 points for the last couple of weeks, so I think that could continue, as there are a lot of concerns around the world and we are waiting to see whether the US and the Chinese will behave when it comes to trade.

If we can break above the 2740 level, the market then goes much higher, perhaps reaching towards the 2800 level. I think that if we break down below the 2700 level, the market could drop down to the 2680 level underneath which is short-term support. I believe that longer-term, the market continues to find value hunters, and there is a major uptrend line that coincides roughly with the 2600 level. Because of that, I still remain constructive, but I also recognize that there are a lot of headwinds in the market, and quite frankly we have needed a significant pullback for some time. Overall, I am a buyer of dips, and most certainly willing to buy this market above the 2740 level if it gets taken out to the upside. Longer-term, I think we should continue to go much higher, but I recognize that there are a multitude of things out there that could scare this market.

S&P 500 Video 28.05.18

This article was originally posted on FX Empire

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