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Christopher Lewis
S&P 500

The S&P 500 rallied a bit during the trading session on Tuesday to reach towards the 3800 level. The 3800 level of course is an area that has offered a bit of support and resistance more than once, and I think at this point in time it is obvious that there are a lot of concerns about whether or not the stimulus will be big enough to keep Wall Street satiated. At the end of the day though, this is all about stimulus and has nothing to do with anything other than that. Yes, its earnings season but over the longer term that tends to have very little in the way of what happens next, it is all about that cheap money.

S&P 500 Video 20.01.21

We have an uptrend line underneath that should continue to support this market in general so therefore I look it dips as potential opportunities to get long in a market that is essentially one way over the longer term. The uptrend line and the 50 day EMA converge quite nicely underneath so that would be an area that I would be very interested in. As far as shorting is concerned, I would not have any real interest in doing so but could be convinced to take a short-term selling position if we did somehow break down below the 3600 level, something that is not going to happen in the next few days.

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To the upside, I believe that we will eventually go looking towards the 4000 level, as soon as Wall Street gets the “all clear” of more cheap money being thrown in its direction, and perhaps once we get past the bulk of earnings season.

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

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