The S&P 500 initially tried to rally during the course of the trading session on Monday but gave back the gains as we got close to the 4200 level. The 4200 level has been like a bit of a brick wall, but most importantly I think we are looking at the jobs number at the end of the week and simply waiting. There are a few other announcements along the way that could be important, but quite frankly were in the midst of earnings season as well, so there is going to be a lot of noise out there. Nonetheless, we are in an uptrend and therefore you should always keep that in the back of your head.
S&P 500 Video 04.05.21
If we can break above the 4200 level on a daily close, then it is obviously a very bullish sign for the overall trend, and we would go much higher. On the other hand, if we pull back a bit along the way, the 4100 level would then be the initial support level, followed by the 50 day EMA which is sitting right at the gap that is on top of the 4000 level. The 4000 level of course is a large, round, psychologically significant figure, and therefore you need to pay close attention to that because if we were to break down below that level that could kick off something rather ugly. Either way, you are more than likely going to be waiting for a break above the 4200 level on a daily close, or some type of pullback that shows signs of support in order to find value that you can take advantage of.
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