By FXEmpire.com
The S&P 500 index had a bullish five days this past week. The market looks like it’s trying to break down, and a daily close above the 1425 level would in fact signal that it’s happened. This market looks very strong at this point in time, most likely due to the fact that many of the markets participants expect the Federal Reserve to start easing again.
Matter what you feel about the sugar high that they will get, and how long it will last, you simply have to be on the long side of the trade when the market behaves like this. Granted, we know that stimulus and quantitative easing is affecting the market for shorter and shorter intervals now, but we do know that the markets react positively to them.
Because of this, once we get that daily candle above the 1425 level we are more than willing to buy high beta names and S&P 500 futures. As for shorting the market overall, we don’t see the logic in doing it at this point in time. However, if the Federal Reserve doesn’t give the market what it once or even if it disappoints – this market could come undone.
Click here a current S&P 500 Chart.
Originally posted here
