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Market performed well given the economic fears but what’s next?

I think, today’s market performance was somewhat promising. Of course, it may be all over tomorrow but given the Friday’s sudden economic growth worries causing the market dropping 1.8% would be propagating into today’s trading. Or are investors no longer worried? Or are the worries actually a BS? Of course, we do not know answers (and in fact I personally do not care).

But one thing is sure – the market which refuse to go down on all sorts of bad news is the market which would eventually go up. And today was the day in my opinion. Although, there was a weakness in the market today, it held the 2800 level fairly good and consolidated nicely.

However, we still may see some down pressure in coming days. We may go all the way down to 2750 level to test the 200 DMA (and the only reason for that would be, that we still didn’t hold 2800 and didn’t close above this important level). But market participants may be irrational and still push this market higher in the coming week.

On the other hand (and matter how much I dislike Trump) the Muller report may actually be bullish for the markets. We need to see the futures tonight and early in the morning (before market opens) to get an idea of what the next day would look like. As of now, I am a bit torn between the two outcomes, although lean towards moving down to 2750 level where we should bounce again.
 

S&P 500
 





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