Stock Markets Have a Strong Week

The S&P 500 initially shot higher during the course of the week to break above the 4400 level. At this point, the market looks as if it has turned the corner, but whether or not we have a longer-term rally is a completely different question. This move has made very little sense in the face of significant tightening, but it is the numbers that matter. If we can break above the 4500 level, then I am a buyer of the market. Until then, I look at this with suspicion, because quite frankly it would not take much to have everybody freaking out again. The size of the candlestick is rather convincing though, so I have had to make the decision that I will simply buy above 4500 and hold my nose.

S&P 500 Video 21.03.22

We have an entire generation of money managers that have known nothing but “buy the dip”, so it is difficult to imagine they will suddenly find religion. That being said, the market is still going to be on very unstable ground, so you need to be aware of this. Ultimately, I am going to take a look at the bottom of the Thursday candlestick as a signal to start selling. That being said, the market is likely to see a lot of questions asked of the market, as it built on sugar highs and a lot of guessing at this point. That being said, macroeconomics has been taken out back and shot yet again, as the liquidity game continues to be the only one in town. Next week is going to be crucial.

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