S&P 500 Gets Reprieve on Thursday

The S&P 500 has been very bullish during the trading session on Thursday to reach towards the bottom of the trendline that we had been paying close attention to. That being said, the market is likely to continue seeing noisy behavior, especially as the world continues to worry about what is going on with the Federal Reserve and its tightening policy. That being said, the market is likely to see a lot of volatility pick up yet again, but quite frankly it is not a huge surprise to see that the 4500 level has offered support. At this point, as long as we can stay above the 4500 level it is likely that we could see some type of consolidation range more than some type of meltdown.

S&P 500 Video 21.01.22

If we do break down below the 4500 level, then I might be willing to buy puts, perhaps for a move down towards the 200 day EMA. At this juncture, I do not necessarily expect that, but I certainly would not short this market due to the fact that it is so heavily manipulated by the Federal Reserve, and Lord knows who else. Keep in mind that indices are not made to go down, because they are not equally weighted. Because of this, they have a natural proclivity to go much higher and given enough time they do. With that, you need to be cautious about shorting and I find it much easier to buy these indices when they are rallying, but right now we clearly have a lot of work to do. At this point, 4500 continues to be very important.

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