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Christopher Lewis
S&P 500

The S&P 500 has gapped higher to kick off the trading session on Wednesday, as we continue to see a lot of noise in general. With that being the case, it is likely that we will eventually break out and go looking towards the 3400 level, an area that has been the most recent all-time high. I do think that we get there given enough time, but quite frankly there is a lot of noise out there in the short term that is going to continue to be an issue.

S&P 500 Video 16.07.20

With the Federal Reserve doing everything it can to lift the Wall Street, I do think that it is only a matter of time before we see this market break out. We are in the midst of earnings season, so you may have the occasional “knee-jerk reaction”, but at the end of the day fundamentals do not matter beyond liquidity. The other thing that can help of course is anything virus related that is positive. With that being the case, I think that this market will eventually find one reason or another to rally, as it is a one-way trade.

I believe that the 3000 level underneath is a massive floor, assuming that we can even get down to that level as the 50 day EMA has also offered a lot of support. All things being equal, I think that we are going much higher over the longer term, as long as we continue to see central banks keep everything afloat.

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

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