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Christopher Lewis
S&P 500 daily chart, August 28, 2019

The S&P 500 has gone back and forth during the trading session, as the 2900 level has offered a bit of resistance. What’s interesting is that the market simply can’t go anywhere during the day and it appears that we are roughly halfway between the 50 day EMA and the 200 day EMA. This tells me that there are a lot of questions out there, as we continue to simply grind back and forth. At this point, I suspect that we are probably going to be waiting for the jobs numbers to make our next move. We happen to be in the end of the holiday season for traders, so volume of course is going to be a major issue.

S&P 500 Video 28.08.19

In fact, this is why so many random headlines on Twitter have from the markets around. Quite frankly it’s not a very illiquid market all things being considered, and it’s likely that algorithmic programs have been trading headlines more than anything else. With that, I’m going to stay away from the S&P 500, as I believe that we are still stuck in the same range between 2050 and 2950. I think at this point, if you get closer to the edge can trade, using that edge as support or resistance. All things being equal though, it does look probably more likely for a break down than a move higher, at least in the short term. With that, I remain on the sidelines in the meantime.

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