SP500 has more momentum to the upside

2 Feb 2022As we mentioned yesterday, watch out for upside levels on the sp500 as we get a risk on bid. We did exactly just that as the index moved higher and settled into the 38% fib level from the most recent highs to the most recent lows. As of now, the market is consolidating at the highs with low liquidity and volume traded overnight. This consolidation suggests the market wants to make another move but in which direction? If we look at clues from FED members Bolstic and Harker have already begun to downplay this fridays NFP numbers. This suggest to us the economy is weaker than most FED narrative as of late, given us an upside bias to the stock market. Levels to watch to the upside would be 4620*, 4645* or 4675*. If we pull back for whatever reason, watch out for 4560 to the downside.