Christopher Lewis
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The S&P 500 has rallied ever so slightly during the trading session on Wednesday as we continue to pay close attention to the 50 day EMA, which is currently sitting just below. That being said, the market is likely to see this area as a “zone of support, as we not only have the 50 day EMA, but we also have a couple of trendlines.

S&P 500 Video 16.09.21

Because of this, I would anticipate that a certain amount of buying pressure should show itself here, and I think that the correction may be getting close to an end. That being said, I am not necessarily willing to get long of this market until we take out the negativity from the Tuesday session to the upside. If we continue to break down from here, a move below the 4400 level triggers put buying for me, because although it would more than likely send this market much lower, the reality is that I do not short US indices as the Federal Reserve steps in and makes its presence known anytime somebody on Wall Street loses money.

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To the upside, if we can break above the highs of the trading session on Tuesday then I think the market goes looking towards the recent all-time highs, and then beyond towards the 4600 level. Quite frankly, this is a market that continues to levitate regardless of what is going on underneath it, as far as the real economy is concerned. Yes, there will eventually be enough negativity to make the market have a significant pullback, but at that point I am a put buyer and I profit that way.

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