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Christopher Lewis
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The S&P 500 has rallied rather significantly during the trading session to break above the 3250 level and beyond. With that in mind it does make quite a bit of sense that we should continue to see buyers come into this marketplace based upon dips. We are in the midst of an earnings season so there will be the occasional hiccup along the way but those should be thought of as potential buying opportunities. Furthermore, it is worth noting that the 3200 level underneath will cause a lot of support as it is a large, round, psychologically significant figure. All things being equal it is likely that this market may revisit that area but if it does, there will be buyers there.

S&P 500 Video 22.07.20

On the other hand, I believe that the real story is that the market is going to go looking towards the 3350 level, followed by the 3400 level. We are going to try to fill that little gap in that general vicinity, and then I think blow through it to hit the all-time highs again. This is it based upon an earnings or anything other than the fact that the Federal Reserve is pumping the markets full of liquidity, and quite frankly money does not have anywhere to go. The US dollar took a ripe beating during the trading session, and that tends to help the S&P 500 as well. With that being the case, a weaker US dollar should make US companies more competitive across the globe. Beyond that, we are in an uptrend anyway.

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