- The S&P 500 rallied a bit early during the trading session here on Thursday, as we continue to see a lot of upward pressure based on the idea that perhaps loose monetary policy is going to save everybody.
- Short-term pullbacks continue to be buying opportunities, and I just don't have an argument for trying to sell this market yet.
- It does look a little exhausted, but as New York is waking up, we're starting to see more money run into the market, so not a huge surprise, I suppose.
With that being said, I think you've got a situation where traders will continue to buy the dips. I would love to see a pullback to the 4,800 level. Given enough time, I think we get it, and that should be a support level.
Underneath there we have the 4700 level which of course is also support due to the fact that the 50-day EMA is hanging around as well. In general, I don't have any interest in shorting this market like I said but I do think that we are hell-bent on going to the 5000 level. The 4900 level is your initial target but after that you are probably going to see a beeline to the 5000 level where I think there's going to be a huge target and battlefield. I think a lot of things will coalesce around that level to cause some issues.
In the meantime, though, every time the S&P 500 market pulls back, there seems to be buyers willing to get involved. So, you really can't argue with that. And it does look like that will continue to be the case and therefore, you have to just basically, have a situation where you just have to hold your nose and chase. I think that's the only thing you can do and then of course buy on dips. If we break down below the 4700 level, then it's possible that we could go down to the 4500 level where the 200 day EMA is starting to come into the picture. Ultimately, this is a market that I think is going to continue to be bullish under any circumstance, as long as it looks like the Federal Reserve is going to keep its monetary policy loose or perhaps even loosen it in 2024.
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