- The S&P 500 has pulled back just a bit during the trading session to close out the year.
- All things being equal, this is a market that I think continues to see a lot of noisy behavior, but with this being the case, you have to look at a market like this as one that is going to end up being a buying opportunity on dips.
With that being the case, I’m very positive and very bullish on this market, but I also recognize that we are still trying to sort out the narrative to go higher. Momentum has been positive for quite some time, and with that being the case, I think you’re just looking for an opportunity to get long again.
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Technical Support and Targets
I do believe that it is only a matter of time before we reach the 7,000 level. Even if we do break down significantly, we could see plenty of support at the 50-day EMA sitting right around the 6,800 level. Underneath that, then we have the 6,700 level followed by the 6,500 level, which I think is the floor in the market.
I do believe that the 7,000 level will offer a little bit of resistance, but if we can get above there, then I think you have a rush higher. I have no interest whatsoever in shorting this market. I do think that it’s only a matter of time before we go much higher, and once the volume picks up, perhaps next week, as New Year’s Day will be closed and Friday will be a shortened session, then we might see the buyers really taking off and pushing this market to the upside.
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