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Christopher Lewis
S&P 500 daily chart, October 31, 2019

The S&P 500 initially pulled back during the trading session on Wednesday, but then turned around to show signs of strength again as we head towards the FOMC Statement. Ultimately, if we do pull back from here the market should find plenty of support below at the 3000 handle so any pullback at this point should be a temporary setback. The market is obviously driven to the upside but given enough time it’s likely that we will continue to go much higher.

S&P 500 Video 31.10.19

If the Federal Reserve is very dovish in its statement, this should send the stock market much higher as it is a function of all of that cheap money flowing into the financial system. That being the case, it’s likely the dips continue to attract a lot of attention as there is no other alternative. The 3050 level above is massive resistance from a psychological standpoint, but it should be broken relatively soon. The 50 day EMA underneath is found that the 2970 handle, so that would be the next support level. Regardless, I don’t have any interest in selling this market, and I like the idea of pulling back and finding value if we get the opportunity. However, if we break out to a fresh, new hire is very likely that we will simply continue to go towards the 3100 level. This is a market that continues to be volatile, so at this point in time look for value in what has been an extraordinarily strong uptrend.

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