The S&P 500 continues to struggle with the idea of breaking above the 3600 level, which is an area that is a large, round, psychologically significant figure, and the top of the overall range that we have been in. That being said, I think that any pullback at this point in time it is likely that we would find buyers underneath. The market is likely to continue to see a lot of noise in this area, but I do think that eventually we go higher, based upon liquidity measures for no other reason.
S&P 500 Video 23.11.20
While we have been seeing a lot of good news involving vaccines and the like, we have to worry about whether or not the market is going to have to price and some type of economic depression in the meantime. After all, this is a market that has to worry about a huge host of problems, and at this point in time I like the idea of buying dips because ultimately there will be liquidity measures injected if it does get to negative. The 50 week EMA is down at the 3200 level which is the bottom of the overall consolidation and where the 200 day EMA sits. Because of this, I think it makes a lot of sense that dips are to be bought and I think it gives you a nice longer-term opportunity.
I would not necessarily be a buyer here though, because at the very least we need to go back and forth and digest some of the gains. Remember, Wall Street run the liquidity, not earnings.
For a look at all of today’s economic events, check out our economic calendar.