The US indices that I follow here at FX Empire all look very strong at the end of the week, as the US elections are finally behind us, and the Federal Reserve did exactly as expected on Thursday.
The NASDAQ 100 has rallied rather significantly during the week, breaking higher, breaking above the 21,000 level. With this being said, the market looks as if it is trying to go higher, and every short-term pullback, I think, continues to be buying opportunities just waiting to happen.
The 20,000 level underneath is a significant support level as it was previous resistance, and now I think that’s your floor in the market. All things being equal, this is a market that I think given enough time just continues to rip higher as we’ve got the election out of the way, and now America will be more likely than not to become much more pro-business.
The Dow Jones 30 has broken to the upside and is now testing all-time highs and it looks like we could even get close to the 44,000 level. Short term pullbacks I think are buying opportunities, with the 41,900 level offering a bit of a floor. We have gotten past the election as I mentioned previously, and it looks like business friendly policies are almost certainly going to be enacted.
If that’s the case, that should be good for the stock market. But at the same time, we have to keep in mind that interest rates will continue to be a major factor. And they have been rising on their own without the help of the federal reserve, which has actually been cutting them. So, keep an eye on that. Nonetheless, this looks like a very strong move just waiting to happen.
The S&P 500 is at an all-time high. As I said before the end of the year, we would get to the 6,000 level. And quite frankly, we may get there by the end of the week. You just have to wait and see, as I am recording this on Friday morning. Short-term pullbacks in this market should see plenty of buyers.
And I think at this point in time, at least in the short term, the 5,700 level is your floor. I look for value in those pullbacks and I believe they will be buying opportunities. Remember, with all of these indices we are also in the midst of earning season, so that of course has had its influence and has been fairly decent. So with this, it looks like the stock market will continue higher over the longer term and any pullback will be looked at as a potential opportunity.
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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.