FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks

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.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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.

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

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker