The S&P 500 has done very little during the trading session again on Wednesday, as we hang around the 3800 level. The 3800 level of course is an area that has been important more than once, so I like the idea of waiting for some type of break out to the upside in order to get long again. If we can clear the 3815 level, then I think it opens up a move towards the 3900 level. On the other hand, if we do pull back, I think there is plenty of support underneath to keep this market going higher. The 50 day EMA is near the uptrend line, so I think that would of course offer massive support from a longer-term standpoint. Ultimately, I have no interest in trying to get too cute with this trade, meaning that I would not be interested in shorting.
S&P 500 Video 14.01.21
The 3600 level just below the uptrend line also offer support, so I think at that point a lot of value hunters would jump back into this market. Quite frankly, it is almost impossible to short the S&P 500 anytime soon, if for no other reason than the idea that there is so much in the way of stimulus overall. I do believe that the overall target for the longer-term is still 4000, despite the fact that we have slowed down over the last couple of days. There is the old adage, “Never short a quiet market.” I think that will be the case here.
For a look at all of today’s economic events, check out our economic calendar.