Dip-buyers keep stepping into the S&P 500, and DailyForex analyst Christopher Lewis reads the setup as a path back toward record highs. He points to a symmetrical triangle on the verge of breaking out and sees the 50-day EMA at 7,375 acting as support.
Buyers keep defending every dip in the S&P 500, and that resilience has DailyForex analyst Christopher Lewis looking toward the recent all-time highs. The index turned bullish through the session after dropping on Monday, and Lewis argues the market now looks ready to break out of a symmetrical triangle.
Lewis says he would not sell or short this market, calling it far too resilient. He expects the index to reach the recent highs and then push higher, and would not be surprised to see 8,000 between now and mid-fall. The 50-day EMA sits at 7,375 and is rising, which he treats as the floor alongside the triangle's trend line.
The outlook is not clean. Lewis flags plenty of noise around the world that could cause headaches, chief among them the chance the Federal Reserve still has to fight inflation. That would keep the pressure to raise rates alive.
But the softer jobs number reported Thursday has given Wall Street reason to think the Fed may have some cover to hold off. Lewis stays a buyer of dips and expects the highs to fall eventually, though he warns this time of year tends to trade choppy and sideways.
Source: DailyForex
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