The S&P 500 has been very choppy during the trading session on Wednesday, as we continue to see a lot of volatility overall. The market seems to be paying quite a bit of attention to the 3150 handle, which breaking above there could open up the possibility of a move towards the 3200 level still. I see a lot of noise underneath, so keep in mind that the market has a lot of potential to find buyers between here and the 3000 level. Quite frankly, I like the idea of buying dips when they occur, with the 3000 level being thought of as a bit of a “floor” in the market. To the upside, the 3200 level continues to be very resistive, so I think we are carving out a sloppy range in 200 point increments.
S&P 500 Video 09.07.20
We do have earnings season coming in a little over a week, so that could have an effect on what happens in the market next, but I think at this point you still have to think about the Federal Reserve more than anything else and they are clearly helping out Wall Street as much as they can. As the Federal Reserve works for Wall Street, it is obvious that even if we get some type of major meltdown there would be multiple areas where they might step in by adding more “liquidity measures.” As we had had several green candles in a row, it should not be thought of as overly bearish to pull back a bit from here. A little bit of patience could reap rewards by finding value underneath.
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