The S&P 500 initially gapped lower to reach as low as 3025 before turning around and rally towards the 3100 area. This is an area that shows a significant amount of resistance, so I think at this point in time it is highly likely that we will see back-and-forth trading, and therefore I think we are essentially range bound. The 50 day EMA underneath is starting to approach the 3000 handle, and that of course is an area that will attract a certain amount of attention due to the fact that we have seen buyers there previously, and of course it is a large, round, psychologically significant figure.
S&P 500 Video 23.06.20
To the upside I believe that the 3200 level is massive resistance, and I think at this point we are probably just going to go back and forth in this general vicinity but overall, I think we are simply trying to figure out what to do next. After all, the coronavirus numbers are up, and we are starting to see people ask a lot of questions about the global economy. Ultimately, this is a market that I think has shown itself to be extraordinarily resilient and with the Federal Reserve out there willing to lift the market at any costs, one has to think that buyers will continue to flock to this market on pullbacks. In fact, I see a lot of noise between here and 2800 so as long as we stay above there, there is always going to be a chance for the buyers to take over again.
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