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Christopher Lewis
S&P 500

The S&P 500 initially pulled back a bit during the trading session on Tuesday but started to see buyers almost immediately. At that point, the market broke above the 3500 level, and looks likely to go looking towards the 3150 level again given enough time. Remember, this is a shortened week as the July 3 session will be close to, so it makes quite a bit of sense that we may get a little bit more in the way of movement over the next couple of days.

S&P 500 Video 01.07.20

To the downside, I see the 50 day EMA near the 3000 level to be massive support, followed by the 200 day EMA which is on the other side of that level. Because of this, I think we are likely to see plenty of buyers in that general vicinity, assuming we even pull back to that area. We could have just formed a little bit of a “double bottom”, but it is a little early to call that.

All things being equal though, you should keep in mind that the Federal Reserve is pumping as much liquidity into the market is possible, so it is likely that Wall Street will continue to take all of that cheap and free money, using it to buy stocks yet again. The economic headlines out in the real world have nothing to do with how the market trades, as it is all about liquidity coming out of the Federal Reserve. It has been that way for over a dozen years, so there is no point in fighting it.

For a look at all of today’s economic events, check out our economic calendar.

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