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Christopher Lewis
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The S&P 500 has gotten a bit stretched over the last couple weeks, and we are starting to see that as the momentum is most certainly dropping. At this point in time, the market is likely to continue to see a lot of noise, but I do think that we have a couple of support levels underneath that should come into play. The first one would be the 4100 level, which of course has support due to the fact that we have tested it recently, and it is also a large, round, psychologically significant figure.

S&P 500 Video 15.04.21

After that, we have a gap near the 4000 level, which not only would it be supportive because of that gap, but also that large figure as well. The 50 day EMA then follows at the 3935 level. It is not until we break down below 3900 that I would be concerned about the uptrend, and even then, I would be a buyer of puts, not necessarily someone looking to short this market. After all, we have been taught over the last 13 years that the Federal Reserve will certainly jump into the fray every time it has to pick the market up, so the last thing you want to do is be short of an index when something like that happens. With that being the case, I am looking for pullbacks as potential buying opportunities going forward and will treat them as such. With that being the case, I am going to simply sit on the sidelines and wait for an opportunity to pick up “value” going forward.

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