S&P 500 Forecast Today 20/9: Soars As Bulls Dominate (Chart)
Date
9/20/2024 4:46:30 AM
(MENAFN- Daily Forex)
During my analysis of major stock markets, it's obvious that the S&P 500 is extraordinarily bullish as we have taken off to the upside during the trading session on Thursday. Furthermore, we have seen the market break well above the top of the shooting star from the previous 2 sessions, which of course suggests that the market is going to“melt up.” In this environment, it looks like the market could very well take off and go looking to the 5800 level, but I would also be somewhat cautious, because quite frankly it's not uncommon for the market to react the way it is right now, only to turn around as larger traders take advantage of the liquidity being offered.
A lot of noise at the moment
Keep in mind that there is a lot of noise at the moment, you will have to be very cautious about trying to get overly aggressive here, because quite frankly the question now is whether or not the Federal Reserve see something ugly coming down the road, or if we are really entering a major era of prosperity in the United States? I suspect that the prosperity is a bit of a pipe dream, as inflation is still a bit of an issue, and the Federal Reserve cutting rates the way they have almost certainly eventually stoke more of it. Inflation of course is very negative for the economy, and that could cause major issues down the road.
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That being said, it's obvious that buyers are involved at this point, and I do think that the 5600 level will continue to offer a bit of a significant floor in the market. Underneath there, we have the 50 Day EMA rising in offering support, so I think this is a situation where there might be more of a“buy on the dips” attitude than anything else, but right now it looks like there is a major“FOMO buying spree” that a lot of traders could get burned with if they are not careful. Either way, it's almost impossible to get short of this market right now.
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