Christopher Lewis
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The S&P 500 has rallied a bit during the course of the trading session on Thursday as we have broken above the 4150 handle. By doing so, the market looks as if it is ready to continue to go much higher, perhaps reaching towards the 4200 level. The retail sales figures in America came out much stronger than anticipated premarket, so this gave the S&P 500 a boost right off the bat when the cash markets opened.

S&P 500 Video 16.04.21

At this point in time, we look very likely to go looking towards the 4200 level above, which of course is another large, round, psychologically significant figure, and an area that I had suggested we could be going towards. Pullbacks will find plenty of buyers, and we now have a gap just above the 4000 level that should offer a “floor in the market”, barring some type of massive meltdown. All things being equal, this is a market that will find reasons to go higher regardless, because of course the Federal Reserve is likely to do whatever he can to keep this market going higher, and of course stimulus checks keep finding their way into the stock market.

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Underneath, we not only have the 4000 level and the gap, but we also have the 50 day EMA near the 3950 level. At this point in time, I have no scenario in which I would be a seller, but if we broke down below the 50 day EMA, then I would be a buyer of puts as it should send this market much lower, but I am not willing to actually step in and short this market.

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

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