S&P 500 Forecast August 11, 2014, Technical Analysis » Fx Empire …
Get Forex buy/sell signals directly to your email and by SMS.
The S&P 500 rose drastically during the session on Friday, after bouncing off of the 1910 handle. The move is rather impulsive, so we feel that the S&P 500 may continue to go higher from here. Quite frankly, we feel that this market should test the 1940 level next, and then ultimately head as high as 1990 where it would begin to test the 2000 resistance barrier as well.
The selloff recently has been rather drastic, but quite frankly this has been a very positive market that needed to pull back some. Because of this, we now have a lot of the “scared money” out of the marketplace, and could very well see bullish trends reemerge. It doesn’t necessarily mean that we will have it happen overnight, or that it will be very quick, as there is a possibility that we need to grind our way higher. However, ultimately the S&P 500 still overall bullish, and even with this pullback that we have seen recently, that has not changed.
We believe that pullbacks going forward should offer buying opportunities, and that short-term traders should continue to come into this marketplace to push it higher. The 2000 barrier is significant, but ultimately we do believe that the area will be broken, and as a result we are bullish overall. Quite rightly, with bond yields being as low as they are, and as long as economic numbers are at least somewhat reasonable, it’s difficult about again stocks as the market simply seems to ignore bad news in the long run anyway.
We have had a relatively weak earnings season, but at the end of the day stocks and earnings have almost nothing to do with each other anymore. This is a simple matter of trying to find some type of return, and stocks are about the only game in town at the moment. It is not until we break well below the 1900 level that we would consider selling this market, so right now we are essentially “buy only” of the S&P 500 going forward.
More:
S&P 500 Forecast August 11, 2014, Technical Analysis » Fx Empire …
See which stocks are being affected by Social Media
