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Christopher Lewis
S&P 500

The S&P 500 has rallied a bit during the trading session on Monday to kick off the week, showing signs of further upward pressure. That being said, you should keep in mind that this is a heavy earnings week for the US stock markets, so we should get a little bit of volatility. Most of this is being driven on the speculative fever of loose monetary policy, so as long as the Federal Reserve continues to facilitate the market, the market should go higher. There is the Federal Reserve meeting this week, and they will certainly do nothing to rock the boat.

S&P 500 Video 26.01.21

Underneath, I see the 3800 level as support, and I also see the 3750 level as another support level. After that, we have the 50 day EMA at the 3690 level, and that of course the uptrend line underneath there. In other words, we have a whole slew of areas underneath that could be buying opportunities, so I have no interest in trying to get cute and short this market. Beyond that, you cannot short the US index, because they are not equally weighted. In other words, they are not designed to fall for very long and they typically do not.

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The Federal Reserve will step in and protect everybody of the losses get to be too much, so at this point in time the only question you should be asking yourself is whether or not you should be long of the market, or should you be on the sidelines? Dips to offer value so I think that is probably what we will have to look towards.

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

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