FXEmpire | September 23 2012 9:23 EDT
The S&P 500 Index fell during the week but bounced off of the 1450 level in order to form a hammer. The market is broken out, and has been since we got above the 1400 level. This does look like a market wants to continue, and as long as we stay above 1400, we are willing to buy on the dips in such vehicles as the SPY and futures markets. As for selling, we simply will not do it until we get well below the 1400 level, as we really think that will be significant support going forward.
With the Federal Reserve printing more money and stepping on the gas when it comes to quantitative easing, it is hard to believe that asset classes such as the S&P 500 index will benefit. We like the ETF obviously, but we also like buying individual stocks that have a fair amount of data involved in the trade. We like some financials, and of course growth stocks as money starts to fly around the world looking for a place to park.
Click here for further S&P 500 Forecast.
Originally posted here