Why You Should Buy Stocks, Gold on Any Weakness

Technical analysis shows that S&P 500 remains on an upward trajectory. Investors should buy into this market on any pullbacks toward 2000. Meanwhile, the outlook for gold remains strong.

Author:: Nial Fuller
Publish date:: May 17, 2016 8:41 AM EDT

Recently, we have been discussing the importance of key support near 2000.00 in the S&P 500I:GSPC and that we were looking to buy on any weakness while above that support level, ideally within the 2000.00 - 2030.00 range. We still have a bullish bias on this market as long as it stays above that key 2000.00 support level, and we will look to buy on pullbacks to near 2000.00 this week, ideally on a price action confirmation signal.

We remain solely focused on the buy side in gold and looking to buy it between 1260.00 - 1240.00 this week on any weakness down into that area. Traders can wait for a price action confirmation signal on the 1-hour, 4-hour or daily chart or they can consider a blind entry (entry without a price action signal as confirmation) within that support this week should price fall down into it.