Nick Nasad
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S&P500 - Test of Key Support at 1751 Holds, Further Rally to 1800?

At the beginning of the week I talked about the 1751 area in the S&P500 as a key level of support and following the release of the Fed statement the index has again tested this key level, after which we saw a decent bounce. The FOMC didn't say much new, so the underlying dynamics - liquidity based risk rally with some supportive earnings - remains.

My preferred bias then is for a continuation of the rally, with the next upside target near the psychologically round number of 1800. If however the 1751 level is breached, then I suspect we go into some sideways action, with 1741 and 1735 as key support levels.