FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
19,334,386Confirmed
718,947Deaths
12,417,866Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
S&P 500

The S&P 500 went back and forth during the week, initially dropping below the 50 week EMA, but then finding enough support to turn around and break higher. We have not made a fresh, new high yet, but this shows an extreme amount of resiliency, and it is likely that we go looking towards the 3200 level. With that being said, I think it is only a matter of time before we challenge that area again and if we can break above there then there is nothing to stop the S&P 500 from going to the all-time highs again.

In a bit of a running joke, analyst around the world continue to talk about how the stock market is completely divorced from reality, especially from an economic sense. However, that is not true at all, when you think about how much quantitative easing there is out there. Money needs to go somewhere and cheap money with absolutely no returns as far as interest is concerned tends to find itself into the stock market.

S&P 500 Video 22.06.20

Yes, we are blowing up a massive asset bubble, but quite frankly that seems to be the job of the Federal Reserve in the last 20 years anyway. With that in mind, you cannot fight this move, and as one of my favorite analyst recently said, “embrace the stupidity.” With that, you have to look at short-term pullbacks as buying opportunities, but if we were to somehow give up the 2800 level that could bring in a fresh leg lower. If that happens, we probably go much, much lower.

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

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk