- The S&P 500 has rallied a bit during the early hours on Friday and continues to climb as we are threatening a breakout.
- This is interesting because it appears that Wall Street doesn't care that Donald Trump is probably going to levy tariffs on Canada and Mexico. It looks like the US is still the only place to invest in.
S&P 500 Wins by Default?
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As long as that's the case, the S&P 500 will remain a large winner. At this point in time, it would not surprise me at all to see the S&P 500 go looking at the 6200 level. Underneath, we have major support at the 6000 level, backed up by the 50-day EMA, and I think any pullback at this point in time will more likely than not end up being a buying opportunity for what has been a very bullish market. Earnings season is among the thoughts of traders and so far, it's been fairly good. So, I think that comes into the picture as well. Something that we need to pay close attention to the fact that we are closing the week out towards the top of the overall range also tells me that there's a lot of momentum and confidence in these companies.
It's probably also worth noting that we had consolidated for a while and now have broken to the upside. I think at this point in time, it's likely that we are going to continue to see more of a buy on the dip attitude. With that being the case, I think you also have to keep your eyes out for some type of value play as we continue to see a lot of volatility, but longer-term upward pressures. Ultimately, this is a market that I think traders want some exposure to, especially those thinking along the lines of longer-term moves.
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