The S&P 500 has been somewhat quiet during the trading session on Thursday as the markets may be running out of momentum. That being said, the market is still very bullish, and I do not have any interest in trying to short it. That being the case, think that the markets will probably find a reason sooner or later to go higher, perhaps due to earnings. Earnings season so far has been fairly good, and that of course does help the overall situation. Nonetheless, markets to undulate and therefore we need to see a bit of a pullback in order to build up the necessary momentum to continue going higher. Quite frankly, we are on the verge of a breakout to the upside and an all-time high, but we may have a couple of days’ worth of work to do before getting that move to happen.
S&P 500 Video 22.10.21
The 50 day EMA currently sits at roughly 4420, and therefore I think that offers a bit of a floor in the market. Nonetheless, I think that the market goes looking towards the 4600 level, which of course is a large, round, psychologically significant figure. Nonetheless, I think that pullbacks continue to offer plenty of value that people will be willing to take advantage of. I have no interest whatsoever in trying to short this market, because the liquidity measures continue to be extreme, and of course will support the market. The Federal Reserve is not somebody you wish to fight against, so as long as that is the case I think this market has to be respected for being in an uptrend.
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