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Christopher Lewis
S&P 500 daily chart, July 22, 2019

The S&P 500 went back and forth during the course of the week, and Friday of course was no different. We continue to dance around the 3000 level, as it is a large, round, psychologically significant figure that the market is going to need to be comfortable with. To the downside, I see a massive gap near the 2950 level. If we were to break down below that gap, then the market probably will go further. That being said, the 50 day EMA is starting to reach towards that gap, so at this point I think it’s only a matter of time before the buyers return.

S&P 500 Video 22.07.19

Beyond that, if we can break above the highs, then the market is free to go much higher. I think at this point we start looking at this as a situation where you buy the dips and forget about shorting. Longer-term, I think the central bank cutting interest rates will continue to propel this market higher, as we are in a strong move but also have no reason whatsoever to go against the move. We are in the middle of earnings season, so it makes quite a bit of sense that we get volatility but until the central bank changes its tune, that’s what’s going to matter as things like earnings and profits have gone by the wayside over the last decade or so when it comes to stock market trading. I remain resilient right along with the market as far as the uptrend is concerned.

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