Christopher Lewis
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The S&P 500 has initially tried to rally during the trading session on Thursday but then gave up the gains to crash into the 50 day EMA. At this point, we are not necessarily in a downtrend, but we are starting to see some volatility in the markets. I think that you will eventually get the buying opportunity based upon some type of pullback that show support, but I do not think we have a quite yet. Quite frankly, would not be surprised at all to see this market drop down to the 3800 level.

S&P 500 Video 26.03.21

If we do break the 3800 level, I might be convinced to start buying puts, but I would not be a seller of this market, because quite frankly that has been a great way to lose money over the years. We clearly have seen a shift in the attitude of traders over the last couple of days as interest rates have come into the fold, and people are starting to pay close attention to the idea of Europe not opening up.

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From the American point of view, the Initial Jobless Claims came out better than anticipated during the session, but quite frankly over 620,000 per week is still not good. The economy is going to be very noisy from an economic numbers standpoint, and I think you are starting to see the stock market wonder whether or not they are going to be able to rely on stimulus alone to push prices higher. With that being the case, I am patiently waiting some type of support of candle to take advantage of.

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

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