The S&P 500 went sideways initially during the day on Thursday, but then reached towards the 2690 level yet again. This is an area that continues to be resistive, and quite frankly I think the volume would have been very thin to say the least during the trading session on Thursday. Having said that, I believe that longer-term it is a “buy on the dips” situation, and at this point I have no interest in selling this market, as I think there is a “hard floor” at the 2650 handle underneath, which is massive and its importance. If we can break above the 2700 level, the market is free to go much higher, but with the holidays coming, this is a market that’s going to be very thin, so therefore I doubt there will be much appetite to put a lot of money into the marketplace in the short term, and therefore I think that this is going to be a nonevent as far as the trading today is concerned.
In fact, I believe that the market doesn’t pick up volume until a few days after New Year’s Day, so between now and then I think that it is very unlikely that we get a significant move in the short term. If we do get a sudden move, it will probably be due to some type of political headline, or perhaps some type of catastrophe. Otherwise, this looks like a great time a year to be on the side waiting for volume to return, and enjoy your holidays.
S&P 500 Video 22.12.17
This article was originally posted on FX Empire