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Christopher Lewis
S&P 500

The S&P 500 initially gapped lower to kick off the week, only to turn around and show signs of strength again. Ultimately, the 3800 level above is being targeted, and if we can break above there then we could really go higher, perhaps reaching towards the 4000 level. When you look at the previous consolidation area, it was between the 3200 level on the bottom and the 3600 level on the top. That 400 point range makes for a measured move on a breakout above the 3600 level towards the 4000 handle. That being said, the market is likely to see a lot of back and forth, but I think ultimately the fix is in, meaning that we are going to go much higher.

S&P 500 Video 04.01.21

I like the idea of buying pullbacks, as it should offer plenty of value, especially near the 3600 level. The market can look forward to more stimulus, and perhaps even quantitative easing given enough time. After all, every time Wall Street falls, the Fed is there to catch it. While it does almost nothing for the true economy, it is what it is, and that is the game we are playing. I like buying dips as the uptrend is firmly ensconced and given enough time, I think that you will find plenty of people looking for value on these dips. Ultimately, we could see a bit of a rotation out of the handful of favorite stocks of Wall Street, but at the end of the day we should continue to see overall momentum to the upside.

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