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Christopher Lewis

The S&P 500 initially pulled back towards the 200 day EMA early in the trading session, but then turned around to form a massive hammer. Ultimately, if the market breaks above the top of this candlestick, it’s likely that the market then goes looking towards the 3250 level and trying to break above the previous uptrend line next. The 50 day EMA is starting to turn over at the uptrend line, so will see whether or not we can break back above there. Quite frankly, I think a lot of people out there will continue to look at this as a potential buying opportunity as the US stock markets have gotten cheap. Furthermore, the gap lower is trying to get filled if we do rally that high. The 50% Fibonacci retracement level has just been touched, so quite frankly there are plenty of reasons to think that at the very least people will be looking to get involved.

S&P 500 Video 27.02.20

If we break down below the 200 day EMA, then the market is likely to go down towards the 3000 level next, and then eventually the 2900 level. Stocks have gotten hammered, but people will look at US companies as a bit of a safety play again, as the coronavirus has certainly hurt most markets around the world, but these massive selloffs are healthy considering that the market was totally ignoring the rest of the world. It is still considered to be the most resilient economy, so that makes quite a bit of sense to see money flow into it. Ultimately, it certainly looks as if we are trying to make a stand.

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