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Christopher Lewis
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US Stock Markets

The S&P 500 has rallied significantly during the course of the week, as it looks like we are trying to reach towards the 4200 level. The 4200 level is a large, round, psychologically significant figure that will attract a certain amount of attention. With that being the case, I think that this is a market that will see a lot of noisy behavior, but I do think that given enough time we are probably trying to even break above the 4200 level.

S&P 500 Video 19.04.21

To the downside, it is obvious that the 4000 level is an area that a lot of people will pay attention to, as it is a market that pays close attention to these big figures and it is an area where we have broken out significantly. The 4000 level being broken as resistance should now be a support level. Underneath, the market should reach down to the 3800 as far as support is concerned. If we were to break down below the 3800 level, it is likely that I will be a buyer of puts, not necessarily shorting the market due to the fact that it is so heavily supported by the Federal Reserve and the liquidity measures that continue to be a major aspect.

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You can see that the market has gotten a little bit overdone, but I think at this point any pullback will be thought of as a potential buying opportunity due to the fact that we are in such a huge uptrend. Pullbacks will be healthy, and therefore I think they should be encouraged as we have gotten a little overextended.

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

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