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Christopher Lewis
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S&P 500

The S&P 500 rallied significantly during the trading session on Monday to break above the top of a significant inverted hammer, which of course is a bullish sign. Ultimately that means that we have seen a bit of resiliency from the bullish traders out there, so I do think that we will continue the overall uptrend. Ultimately, we should also take a look at the yields in America calming down, so that of course helps the idea of stocks being able to continue going higher.

S&P 500 Video 02.03.21

Buying on the dips should continue to work, so I think we are going to see this market go reaching towards the 4000 level eventually as it is such a large, round, psychologically significant figure. Furthermore, we have the previous consolidation that measures for that move, so all things been equal, looks like we are lining up quite nicely. The 50 day EMA also offers support, so I think this all sets up for a continuation of what we have been seeing for some time. I do like the idea of buying short-term dips, but I also recognize that there are a lot of different things out there because of yields, Covid relief nonsense, and of course political disarray in the United States.

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Nonetheless, this is a market that only goes higher over the longer term based upon the fact that the Federal Reserve is willing to come in and offer relief any time there is a lot of negativity coming into the picture. To the downside, if we do break down below the uptrend line, then the uptrend line underneath there would also offer support, followed by the 3600 level.

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

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