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Christopher Lewis
S&P 500

The S&P 500 initially tried to rally during the trading session on Tuesday but giveback quite a bit of the gains in order to form a bit of a shooting star. That ultimately suggests that perhaps we are going to run into a lot of trouble, and that should not be a huge surprise considering that the 3000 level above is a major resistance barrier that will be difficult to overcome as well, so ultimately it is likely that we will see a lot of selling on short-term rallies, as it is the top of the range and of course the 200 day EMA is in the same area. Furthermore, the 61.8% Fibonacci retracement level will attract a lot of attention and the psychological importance of the 3000 level is important.

S&P 500 Video 20.05.20

To the downside, I believe the 2800 level is roughly the bottom of the range, so a move to that area is very possible. Keep in mind that the market has gone back and forth for some time, so it makes sense that we would continue to bounce around back and forth, as the market has a lot of different things to worry about and quite frankly figure out. We are at the end of an earnings season that has been very opaque to say the least, so do not be surprised at all if the market simply grinds until the next major headline gets everybody either excited or freaked out. If we break above the 3000 level it would be a major event, but it is also going to take some type of catalyst.

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