The S&P 500 initially tried to rally during the trading session on Wednesday, as we continue to see a lot of noise. Overall, I believe that the noise is going to continue as we have earnings season going on so obviously there are a lot of catalysts out there floating around. That catalyst on a daily basis could throw the market in either direction.
S&P 500 Video 18.04.19
However, the 2900 level has been supportive and should continue to be important. With that being the case I suspect that short-term dips will probably be bought, because although we have formed less volume up in this area, the reality is that buyers continue to show up every time there is a bit of value. I don’t think that’s going to change anytime soon, so with that in mind it’s likely that short-term traders will continue to pick up dips.
If we do break down from here I believe that the 2880 level is massive support, followed by the 2850 level and then the 2790 handle. All of that being the case it’s very likely that we continue to see choppiness, volatility, but most of all a value oriented mindset for the market. If we do get some type of massive selloff I anticipate that longer-term big-money firms will be simply waiting to pick up the pieces and add to an already long only type of portfolio that most of them seem to have these days. If we can break above the top of the candle stick for the day, that opens the door to the 2940 handle.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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