FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
59,514,826Confirmed
1,402,028Deaths
41,156,663Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
S&P 500

The S&P 500 has rallied rather significantly during the course of the week, breaking clearly and cleanly above the 3400 level like it was not even there. At this point, the market is moving on the idea of more stimulus coming, come hell or high water. With that, it looks like this is a “one-way trade” again, and therefore it is likely that we will see a lot of volatility going forward and short-term pullback should end up being buying opportunities, assuming that the Congress does some type of fiscal package, or perhaps the Federal Reserve steps in.

S&P 500 Video 12.10.20

For what it is worth, politicians have been stating that they believe they stimulus package will happen, and they all agree on that, but they still have to get their pre-election bickering out of the way. With that being the case, I think that the market is trying to front run what is happening, which could lead to a bit of a “sell the news” type of event, but I do not necessarily think that will be a longer-term pullback. Look at any knee-jerk reaction to the downside as a potential buying opportunity, so therefore you may have to jump down to shorter time frame charts in order to take advantage of potential setups.

At this point, the 3200 level has now become the “long-term floor” in the market, with the 3400 level offering support. I believe that we will hit the all-time highs again, because quite frankly that is all this market does, move on more stimulus and cheap money. That has been the case for over 12 years, I do not see that changing anytime soon.

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

Advertisement
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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US