Christopher Lewis
Add to Bookmarks
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.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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.

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