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Christopher Lewis
S&P 500 daily chart, November 13, 2019

The S&P 500 has initially pulled back during trading on Tuesday but then shot higher to show signs of strength again. By doing so, the market looks likely to try to break out of this channel that it’s been it for some time, and as a result we could get an explosive move. That being said, there is a certain amount of overextension to what we are doing right now, so don’t be surprised at all to see a pullback in the meantime. The market could find quite a bit of support near the 3050 level on a significant pullback and will almost certainly find plenty of support at the 3030 and then the 3000 levels.

S&P 500 Video 13.11.19

Looking at this chart, there is an undeniable uptrend going on, so obviously there will be a lot of value hunters underneath to try to take advantage of cheaper pricing. The impulsive candle from the 3030 handle is very interesting for me, and I think that it’s probably only a matter of time before buyers would be attracted to it. The alternate scenario of course is that we simply break out to the upside and clear the 3100 level decisively. If we do, then the market will make its move towards the targeted 3200 level above, based upon the ascending triangle that we had broken out of at the 3030 level. All things being equal, I don’t have a scenario in which I am ready to start selling at this point.

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