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Christopher Lewis
S&P 500

The S&P 500 has cleared the 3300 level during the trading session on Wednesday, as we continue to see traders buy stocks to get away from currency devaluation. The Federal Reserve is more than willing to crank up the printing press yet again to destroy the value of the dollar. As long as that is going to be the case, stock markets will continue to go higher as people have to buy “things” in order to get away from loss of purchasing power. With this being the case, I think we continue to see buyers on dips as it is thought of as offering value.

S&P 500 Video 06.08.20

The 20 day EMA underneath should continue to offer plenty of support, which is currently sitting at the 3250 handle. The market is very likely going to go looking towards the 3400 level, which was originally the all-time high before the melt down in February. In other words, we are very likely to completely wipe out all of those losses. The 3100 level underneath should be massive support and most certainly the 3000 level will be.

All things being equal, I am a buyer of dips and I do not see how you can short this market, especially with the Federal Reserve doing everything it can to keep it afloat. Yes, we are in the midst of earnings season but that does not matter because fundamentals went the way of the dodo about 12 years ago. Do not let things like P/E ratios into your thought process, because quite frankly they just do not matter anymore. As long as the Federal Reserve is going to liquefy the markets, they go higher over the longer term.

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

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