FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks

The S&P 500 rallied a bit during the trading session on Friday, only to turn around and fall again as Nancy Pelosi is supposedly offering that there is significant differences between the House Speaker and the White House. Ultimately, this is a market that is going to continue to find buyers on dips, but we may need to sit on the sidelines and wait for a move down towards the 50 day EMA, possibly the uptrend line.

S&P 500 Video 26.10.20

All things being equal, it is likely that the market is likely to see buyers jump in and pick up value. I have no interest whatsoever in shorting this market, because as you know, the S&P 500 is not built to drop, but when it does it is only a matter of time before somebody steps in and tries to pick it up. It is hard to tell whether or not it will be a Tweet by Donald Trump, or if it will be somebody in the Federal Reserve but somebody will come out and pick it up.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

To the downside, I see the 3400 level as potential support, the 50 day EMA as potential support the uptrend line as potential support, followed by the 200 day EMA. If you look at the history the S&P 500, it has always been painful to short this market, as over the longer term it does in fact grind higher. With that, it might be a simple matter of finding a bit of patience in order to take advantage of value.

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

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker