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Christopher Lewis
S&P 500 daily chart, June 17, 2019

The S&P 500 has found itself quite volatile during Friday trading, initially trying to break down, but finding support as the day wore on shows signs that the market is relatively comfortable in this region. With that in mind, I suspect that what we are going to see next is another attempt to push higher. If we can break above the shooting star from the Tuesday session, that allows the market to go looking towards the 2950 handle.

S&P 500 Video 17.06.19

Based upon the massive candle stick from Thursday, I do believe that there is a lot of demand underneath. You can make the argument as to whether or not that matters and whether or not this is a “safe environment” for risk assets, but the technical analysis is what it says it is. This isn’t a sign that we should jump in and become extraordinarily bullish, but perhaps that we are trying to build up some type of base in a marketplace that is starting to price in a Federal Reserve rate cut. That of course is typically bullish for stocks, as they get their “monetary methadone” that they like so much.

While I do recognize that there are a lot of concerns and fears out there, the reality is there is a lot of money chasing returns in this environment and I don’t think that’s going to change anytime soon. I now see the gap from Monday as a potential “floor” in the next move higher.

Please let us know what you think in the comments below

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