I think we are on the precipice of a bigger move, however I don’t know if it is going to happen right away.
The S&P 500 has gone back and forth during the trading session on Tuesday, as we remain between the 200 day EMA and the downtrend line, therefore it looks as if we are being pressured right now. This usually happens just before a bigger move, and the fact that we are in the middle of earnings season is something you should probably be aware of.
If we were to break down below the bottom of the 200 day EMA, then it is likely that we could go down to the 50 day EMA. Anything below the 50 day EMA makes me short this market aggressively, because it looks to me as if we could go down to the 3800 level, and even the 3600 level.All it would take is extraordinarily bad news, something I’m almost certain we’re going to get sooner or later. The Federal Reserve has a meeting on February 1, and that could be the catalyst for a bigger move. Check the current price of the S&P 500 today.
Important Market Data:
- One way or another, if we break out above the rising trend lineit is possible that we will see a move towards the 4200 level, where I think we would find a lot of resistance.
- In any case, it is obvious that Wall Street is struggling and trying to push the forex market upwardly without taking reality into account.
- Again, as I said in my NASDAQ 100 video today, you can’t argue with the market. It doesn’t matter if you “get it wrong,” you can stay irrational much longer than you can stay solvent.
At this juncture, I think we are on the precipice of a bigger move, however I don’t know if it is going to happen right away, but the next major impulsive candlestick should give us an idea of where we are going over the next couple of weeks. Keep in mind that markets tend to be overreacted in one direction or another from time to time, and I do not see this being any different. I would be surprised if we break above the 4200 level, but it is a potential target. The one thing that I think can be counted on is that it is going to continue to be choppy as we are in the middle of earnings season.
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