(MENAFN- Daily Forex)

• The S&P 500 pulled back on Tuesday but remains in a broader uptrend, with dips likely to attract buyers.
• Support sits near 6,800, while 7,000 remains a realistic year-end target amid expectations of a seasonal“Santa Claus rally.”

The S&P 500 has pulled back early during the trading session on Tuesday, as it looks like the market is going to enter some type of consolidation. The 6,800 level, of course, is an area that's been important multiple times, as it was previous resistance, and it even opened up the possibility of support, but we have since sliced through that level. We also have a trend line, though, and I think that's part of what people are watching, right along with the 50-day EMA.

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All things being equal, this is a market that I do think remains more or less a buy-on-the-dip situation. Therefore, I look at every time this market drops as a potential buying opportunity. The 7,000 level is a very realistic target over the next couple of months, as we should get the so-called Santa Claus rally, which, of course, happens at the end of the year, as traders are trying to catch up with other traders so that they can show their clients that they have at least performed fairly well.

The market breaking down below the hammer that formed on Friday would be a very negative sign and could open up the possibility of a move down to the 6,500 level. I think at that point in time, you would see a lot of buyers as well. Ultimately, I don't have any interest in shorting the market, and quite frankly, the hints that the United States government might come to some type of agreement to reopen are also giving stock traders a reason to get excited and happy again.

Regardless, we're in a nice uptrending channel, and there's no reason to fight that. So with that being the case, I remain bullish and look at each and every dip as an opportunity to get long yet again in a market that has been extraordinarily resilient.

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