Christopher Lewis
Add to Bookmarks

The S&P 500 has pulled back a bit during the trading session as the 10 year note started to see interest rates rise yet again. Ultimately, this is a market that I think is still in a very bullish attitude, and I think that trying to short this market is a great way to lose money. When you see that on Tuesday, we formed a massive hammer that bounced from the 50 day EMA and the uptrend line, it suggests that we are in fact trying to form a new basing pattern that could send this market higher.

S&P 500 Video 26.02.21

When you look at the longer-term attitude of the market, it would not surprise me at all that 4000 is a target. Furthermore, you can even make an argument for that due to the previous consolidation between 3600 below that extended all the way down to the 3200 level. That is a 400 point range and extending that from the 3600 level gets you to that 4000 level. Furthermore, 4000 is a large, round, psychologically significant figure and therefore becomes a bit of a target. It is obvious that the Federal Reserve is going to stand on the sidelines to keep money is loose is possible between now and essentially what seems to be the end of time, and therefore Wall Street will continue to throw money into this bubble. Yes, it is a bubble but at the end of the day you cannot fight this type of market, it simply ends in tears and will cause losses. Buying the dips continues to work.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker