The S&P 500 initially tried to rally during the course of the trading session on Thursday but then gave back the gains to start falling again. Quite frankly, there are lot of mixed messages out there when it comes to the economy in the stock market went forward, but at the end of the day we are still very much in an uptrend and it is worth paying attention to. The 4100 level underneath should offer support, as it has over the last couple weeks. That being said, there is even more support underneath at the 50 day EMA and of course the 4000 level. With that being said, I think that if we get some type of selling pressure, then we will get long again based upon some type of bounce.
S&P 500 Video 07.05.21
To the upside, I see the 4200 level as a major barrier that needs to be overcome with some type of catalyst. We are in the midst of earnings season and it has gone fairly well but quite frankly the market had already priced all that in. Because of this, I think that we will continue to see a “buy on the dips” type of mentality, as we continue to find plenty of narratives out there to push this market higher. Central banks around the world will continue to flood the markets with liquidity, thereby having people push money into stock markets yet again. I see no scenario in which a willing to start shorting this market anytime soon.
For a look at all of today’s economic events, check out our economic calendar.