Christopher Lewis
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The S&P 500 initially tried to rally during the trading session on Wednesday but gave banking sector will made all-time highs. That being said, the 4400 level above was a significant level to get above, so it is not a huge surprise to see that we have pulled back from there. That being said, the market looks a little tired at this point so I would not be surprised at all to see a little bit of a pullback. The market underneath sees plenty of support at the 4200 level, backed up by a 50 day EMA indicator coming into the area, and of course the uptrend line.

S&P 500 Video 15.07.21

If we can break above the 4400 level, then it is likely that the S&P 500 will go looking towards the 4500 level, but it does tend to move in 200 point increments, so I think it is only a matter of time before we get to 4600 for that matter. The only reason I mention the 4500 level is that it would have a little bit of psychological influence.

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Even if we break down through the uptrend line and the 50 day EMA, I suspect that there is even more support near the 4000 handle as the 200 day EMA comes into the picture, and of course will cause a lot of headline noise. That is roughly 10% drop from here, so one would think that it would only be a matter of time before the Fed spoke up and tried to make this thing turned around on a move to that level. Breaking down below the 4000 level has me buying puts, but I certainly would not short this index.

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