Christopher Lewis
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The S&P 500 went back and forth during the trading session on Friday, with a slightly negative bias after the Non-Farm Payroll figures came out horribly. After all, the United States lost 701,000 jobs during the previous month, something that we haven’t seen in years. At this point, the market looks very likely to see a lot of negativity going forward. That being said, if the market breaks down below the 2400 level, then it opens up the door down to the 2200 level. Alternately, if the market breaks to the upside, then the 2600 level above should offer significant resistance. I think at this point we are likely to see a lot of trouble.

S&P 500 Video 06.04.20

If we can break above the highs of last week, then it’s likely that the S&P 500 will continue to try to grind to the upside. For what it’s worth, the weekly candlestick is a shooting star so I believe that we will continue to drop. The question now is whether or not the bottom holds and forms a bit of a “floor” for the market. All things being equal, I believe that the stock market still has a lot of confidence building to do so I do think that the market will probably only go back and forth more than anything else and that’s probably the bullish scenario. I don’t necessarily want to short this market with huge size, just that I would be a bit cautious about getting overly bullish. All things being equal, I believe that we have a lot of work to do in order to get a move going.

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