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Christopher Lewis
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S&P 500

The S&P 500 initially pulled back during the trading session on Wednesday, but then turned around to rally towards the 3450 handle. This is a market that continues to be paid attention to stimulus, and you can make an argument for the possibility of a bullish flag at this point. However, the biggest problem with technical analysis right now is that it simply can tell you where the buyers and sellers might be, but one Tweet or stupid, it could throw everything into disarray.

S&P 500 Video 22.10.20

The 3400 level underneath is massive support from what I can see, because it was massive resistance previously. The 50 day EMA sits underneath and is rising overall, so it should offer support of action, and at this point in time it is likely that the market will attract quite a bit of attention. After that, there is an uptrend line that should keep this market going higher as well. Quite frankly, you do not short indices at this point, because they are so highly manipulated. You buy dips, and you take advantage of value as it occurs.

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Looking at this point in time, the market continues to see a lot of volatility, because quite frankly you cannot move on the earnings, not that we have over the last 12 years for the most part, and you cannot move on the US dollar, unless of course you believe that stimulus is going to be huge. At this point, with the election looming large, there are a multitude of potential bad outcomes in both directions. Buying dips makes the most sense but I would not do so with big amounts of money.

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

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