The S&P 500 rallied a bit during the trading session on Friday, breaking above the 3500 level but has given back some of the gains rather early. This shows that the market is not quite ready to go higher, which is very likely, due to the fact that the markets are waiting to find out whether or not we get stimulus, which of course keeps the markets on edge. Furthermore, they have to worry about whether or not there is going to be ordering the election, because quite frankly a lot of people are concerned about whether or not the market is going to remain stable.
S&P 500 Video 19.10.20
The 3400 level underneath is massive support due to the fact that it had been previous resistance. The 50 day EMA sits just below there, so I think that buyers will be looking for dips. I like the idea of going long based upon the fact that we will eventually get some type of stimulus given enough time which of course is what Wall Street lives and dies for. Looking at the chart, I think it is only a matter of time before we get to the all-time highs, but we may need to pull back towards the 3400 level in order to pick up value.
I have no interest in shorting, because of the fact that the index is not a weighted, and therefore it is based upon a handful of stocks that everybody loves. I have no interest whatsoever in shorting, so I think that the market continues to see a lot of value being offered.
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