Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis
S&P 500

The S&P 500 initially pulled back during the trading session on Wednesday but found enough buying pressure to turn things around. In fact, this was almost as soon as Wall Street woke up, because although the initial reaction to a Democrat-controlled Senate was concern about taxes and business regulation, the switch being flipped over to “stimulus for all” was almost instantaneous. At this point, all you have had to do over the last 13 years trading the S&P 500 is to figure out whether or not money was going to be free and easy. If it is, the S&P 500 goes up. In fact, if you take a look at a chart on the FRED website of the Federal Reserve, if you take a look at the balance sheet of the Federal Reserve and superimpose it with a chart of the S&P 500, it is extraordinarily similar.

S&P 500 Video 07.01.21

In other words, the S&P 500 is in a “post-earnings world”, and therefore macroeconomics have very little to do with what is going on. Beyond that, even company earnings have very little to do with what is going on. After all, we are in a marketplace that has Tesla valued more than the rest of the world’s big automobile companies, even though Tesla sells but a drop in the ocean of vehicles every year. Because of this, it is foolish to try to short this market, even if it has an occasional tantrum. The trend line underneath is your floor, followed by the 50 day EMA, and then the 3600 level.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

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

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.