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Christopher Lewis
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The S&P 500 has pulled back a bit during the trading session on Tuesday as perhaps we are trying to work off some of the excess froth that we have seen in the market as of late. That being said, the market is likely to see buyers underneath trying to get involved, especially near the 4100 level. After all, we are in a massive uptrend and of course the earnings season will have its influence on the markets as well.

S&P 500 Video 21.04.21

For what it is worth, Europe absolutely fell apart when it comes to stock markets, just as Japan did. That being said, the Americans have a long history of turning things around, as the US economy is somewhat disconnected from the rest of the world right now. With that being the case, I fully anticipate that there will be buyers waiting to get involved, and therefore I have no interest in shorting. Beyond that, we also have central bank liquidity that will probably get involved and therefore it is difficult to get short at any particular time. I believe that the 4000 level still offers massive support underneath, as there is a major gap down there that will almost certainly attract a lot of attention in and of itself. Because of this, I believe that what we are seeing here is the possibility of a “buy on the dip” opportunity presenting itself. It is not until we break down below the 3800 level that I am concerned about the uptrend, and even then, I would only be a buyer of puts as you do not short US indices.

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