FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
30,685,257Confirmed
955,694Deaths
22,327,232Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
S&P 500

The S&P 500 initially tried to rally during the trading session on Wednesday but continues to find the market to be a little overbought. The 3200 level seems to be an area that has offered a bit of gravity to the market, but I think at this point it is obvious that pullbacks are going to continue to be bought into. There is one caveat here though, and that of course is whether or not the Federal Reserve is “dovish enough” to continue to send the stock market higher. I find it difficult to believe that J Powell will do anything to stymie growth in stocks, as it is very apparent that the Federal Reserve has a keen interest in keeping stocks up, not down.

S&P 500 Video 11.06.20

To the downside, I believe the 3100 level could offer support, and I think that pullbacks will be looked at as potential buying opportunities. For what it is worth, the 50 day EMA is getting ready to cross above the 200 day EMA, which is the so-called “golden cross.” This is typically a longer-term “buy-and-hold signal”, but it is also quite late most of the time. However, if we are shocked by the Federal Reserve, that could send this market tumbling. Underneath the 3100 level I think there is a significant amount of support just waiting to happen at the 3000 handle. Granted, the economic reality is not been reflected in this market, but as long as the Federal Reserve is going to bail everybody out, they will be willing to take extreme risks like we have seen.

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

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk