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Christopher Lewis
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S&P 500 daily chart, November 28, 2019

The S&P 500 tends to rally towards Christmas, as managers need to make profits to show their clients at the end of the year. At this point, the market is getting a bit extended, but quite frankly can get impulsive this time of year. With that, I look at the 3100 level as a temporary “floor” in the market, with the 50 day EMA racing towards it. At this point in time, I have no interest in trying to short this market, because quite frankly the market shows no signs of weakness. It does of course show signs of impulsivity, but that isn’t necessarily a bad thing.

S&P 500 Video 28.11.19

Even if we break down, I think there is plenty of support all the way down to the 3000 handle and based upon the ascending triangle underneath the 3000 level, there is a measured move waiting to happen that could reach to the 3200 level. That could be hit between now and the end of the year, as many of the pundits on Wall Street have been calling for this figure anyway. Think of it is a “self-fulfilling prophecy”, as traders around the world continue to push towards the end of the year. If we do get a massive selloff for a couple of days, that should end up being a value trade more than anything else, and therefore people will continue to buy the dip.

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