S&P 500 Reaches Major Moving Averages

The S&P 500 has been positive again on Friday, as we have reached the 50 Day EMA, as well as the 200 Day EMA. This is an area that should continue to be of interest, so for what it’s worth, it’s likely that we will see noisy behavior, as we are trying to ‘swim upstream.’

The market is flirting with the 4400 level, which is going to cause a certain amount of attention, but it should also be noted that it was options expiration day, so a lot of noise would have been part of the markets. Ultimately, this is a market that I think eventually rolls over, but it clearly has been stubborn if you are looking for signs of exhaustion. That being said, I do think it is worth noticing that the range continues to shrink each day.

S&P 500 Video 21.03.22

If we break down below the 4327 level, I will start shorting again, this is based upon the bottom of the Thursday session, as it would wipe out two days. I am a bit cautious about putting too much money to work on the short side in this market because as we know, the S&P 500 is quite often manipulated by headlines or jawboning coming out of the Federal Reserve. They have not been willing to talk things out of recently, but I think a lot of people on Wall Street are starting to bet on the Federal Reserve not being able to do as many rate hikes as once thought. Perhaps it is also the idea that there is some clarity. I do not know about that, and I think this has simply been a strong bear market rally.

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