- The early hours of Thursday saw a sharp decline in the S&P 500 Index, but it recovered and surged ahead of the New York session.
- This further demonstrated the index's resilience but bear in mind that the nonfarm payroll figures are released on Friday, which will undoubtedly cause significant market volatility.
The S&P 500 Continues to Look Upwards Overall
During the Thursday trading session, the S&P 500 initially declined, but it later recovered and began to show signs of life once more. In the end, this is a market that I believe you should be very aware of because it will be primarily focused on the Friday jobs number. Having said that, it is important to remember that pulling back will almost certainly present a chance to get long once more. Ultimately, the market has exhibited an exceptionally optimistic outlook, and I do not anticipate this sentiment altering. Recall that a small number of stocks currently dominate the stock market, so the index will perform well as long as the usual suspects continue to perform well.
We are currently in an extremely strong trend because we are in a perfect 45-degree angle uptrend. Additionally, a lot of traders still believe that the Federal Reserve will cut rates later this year, and naturally, this influences how they act in the stock market. Longer term, it appears that stocks will continue to rise as long as it appears that monetary policy will be loose. I think we are going to hit the 5200 level at this point, but if we do pull back, the 5000 level might act as something of a floor for the market. Purchasing dips is something I enjoy doing. Although I dislike speculating too much ahead of the jobs report, I acknowledge that the general trend points to the fact that we are buyers and are currently unable to sell in this market.
I anticipate a lot of volatility with the jobs announcement on Friday, but if there is a significant selloff, I will probably jump in and buy the index because that has been the S&P 500's recent pattern. I just don’t see this happening to change anytime soon at the moment.
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