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Christopher Lewis
S&P 500 daily chart, November 25, 2019

The S&P 500 has gone back and forth during the trading session on Friday, as the market simply has nowhere to be. That being said, the market is just above the crucial 3100 level and it’s very likely that the area will continue to offer support, and most certainly the hammers from a couple of weeks ago that were pressing up against the 3100 level should offer quite a bit of support as well. I don’t like the idea of shorting this market because of that supportive area and of course the fact that we have been in a big uptrend for quite some time.

S&P 500 Video 25.11.19

Even if we were to break down, I believe that the 3030 level is the beginning of significant support down to the 3000 handle, which I have as the “floor” in the leg higher that we are in. For what it’s worth, that is the area where we broke out of to bust out to the upside and kick off the ascending triangle. The ascending triangle underneath should open the door to the 3200 level, and that is my target longer-term. That doesn’t mean we get there overnight, but with earnings season going on and of course a whole plethora of trade headlines, it’s likely that this will be more of a chop fest on the way to that target. Ultimately, this is a market that is one that you can buy on dips, but I would do so cautiously and with minimal size.

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