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Christopher Lewis
S&P 500 daily chart, October 29, 2019

The S&P 500 has broken above the recent highs the show signs of strength again, as market participants show resiliency ahead of the Federal Reserve meeting on Wednesday. By doing so it appears that the market is expected in an extraordinarily dovish Fed, which quite frankly isn’t that much of a surprise. The market should continue to see a lot of momentum to the upside as we have been building up this pressure for some time. However, the market is going to continue to struggle to simply shoot straight up in the air. The markets being acquired and then grinding higher over the longer term is probably the best sign for buyers that you can see.

S&P 500 Video 29.10.19

Beyond that, you can also make an argument for the ascending triangle continuing to be a major factor in this market, with that, I am bullish of this market but a bit cautious about jumping right in with both feet. Ultimately, this is a market that should continue to be bought on dips, and if we do get some type of gift on Wednesday in the form of a pullback, I would be more than willing to jump in and take advantage of it. The market breaking down below the 50 day EMA would change everything for me though, but right now I believe that the market has decided that the 3000 level is going to be the “floor.” Once a large, round, psychologically significant figure has been broken, quite often it then becomes support over the longer term.

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