- The S&P 500 has broken just a little bit higher than the highs of the last couple of days on Wednesday, as we continue to see an overall bullish tint on the market.
- But at the same time, you also have to keep in mind that we have the jobs number coming out on Thursday instead of Friday this week because of the Independence Day holiday.
- So, what I would anticipate is a ton of volatility in this market, which isn’t anything new with the USD/JPY pair.
Caution Needed
With that being the case, I would be very cautious with this market, but I do look at it as one that you want to be a buyer of, not a seller of, and a pullback anywhere near the 6,150 level would almost certainly have me buying on the dip, as it were, at the first signs of a bout. Perhaps getting on the right-hand side of a V pattern might be the way forward. If we were to break down below there I really wouldn’t worry about it too much.
At that point, I’m starting to look for somewhere near $6,050. And then, of course, $6,000. To the upside, I do think that we will do everything we can to finally get to the $6,300 level. But we’re going to have to wait and see whether or not that can actually happen. After all, this is a market that has been a little overextended here recently. So, I think with the ADP numbers coming out lower than anticipated on Wednesday, traders are getting excited again about the idea of cheap money coming out of the Federal Reserve. I don’t know if that happens, but I do recognize that the market certainly thinks it will. So, this remains a very bullish market.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.