The S&P 500 initially tried to rally during the trading session on Tuesday but gave back the early gains in order to fall back towards the 4230 level. This is a market that has been grinding higher for quite some time, and the fact that we are waiting on the Federal Reserve does make a certain amount of sense that we would have a slight pullback. That being said, I think it is only a matter of time before the buyers come back in, either at the 4200 level or Navy even the 50 day EMA which I think will attract a lot of attention.
S&P 500 Video 16.06.21
Looking at this chart, I think that buying the dips continues to be the way forward unless of course the Federal Reserve does something rash, which is almost impossible to happen. With this being the case, the market is likely to continue to be a “buy on the dip” scenario, as we go looking towards the 4400 level.
The 4400 level makes a lot of sense as we do tend to move in 200 point increments, and I think that will continue to be the case going forward. I believe the “floor the market” is near the 4000 handle where we have seen a nice gap. All things been equal, I do believe that the market is one that you cannot be a seller of, but if we were to break down below the 4000 level then it is likely that I would be a buyer of puts, only because that way I can keep my risk to a minimum.
For a look at all of today’s economic events, check out our economic calendar.