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Christopher Lewis
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The S&P 500 has gone back and forth during the course of the week to reach much higher, only to turn around and reach down towards the uptrend line. That being said, the market is forming a bit of a shooting star type of candlestick, but if we turn around a break above it, we could see a significant “inverted hammer” formed. That of course is a bullish sign and could send this market looking towards the 4000 level. If we can break above the 4000 level, then it is likely that we could continue to go much higher.

S&P 500 Video 08.03.21

On the other hand, if we were to break down below the uptrend line, the market is likely to go down to the 3600 level. The 3600 level is of course a large, round, psychologically significant figure, and an area of resistance previously. After that, the 3500 level comes into play, where we would have the 50 week EMA coming into the picture as well. I do not have any interest in shorting this market, and quite frankly I am looking for some type of supportive candlestick in order to go long of this market.

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In general, this is a market that I think continues to see a lot of volatility based upon the interest rates, which of course is toxic for the stock market as traders like the idea of taking the “shore bet” of a bond instead of taking the risk in the stock market which can be very volatile. Nonetheless, it is likely that the market is going to continue to see buyers on dips nonetheless, as we have seen for the last 13 years.

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

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