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Christopher Lewis
S&P 500

The S&P 500 initially fell during the week, drafting down towards the 3100 level before turning around to rally again. This is a market that continues to show signs of resiliency, and if we can break above the top of the weekly candlestick, this market is going to go looking towards the gap above at the 3350 region. Ultimately, I think that we probably reach the all-time highs again, due to the Federal Reserve dumping money into the markets, not necessarily anything to do with the economy. Having said that, a lot of the economic numbers actually have been better than anticipated, although that is a relative standpoint.

S&P 500 Video 20.07.20

The S&P 500 has shown itself to be extraordinarily resilient, and able to look past just about anything. I can give you a million reasons why this market should not be where it is, but at the end of the day the only thing that people are paying attention to is the Federal Reserve. Ultimately, this is a market that continues to be very noisy and driven based upon liquidity, and I do not see that changing anytime soon. Pullbacks at this point continue to offer buying opportunities at least until we break down below the 3000 level, something that does not look highly likely to happen anytime soon. However, I would be the first person to admit that if we break down below the weekly candlestick from this week, it could in theory be thought of as a “handyman.” With all that, I think we have choppy but upward momentum.

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

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