The S&P 500 has pulled back a bit during the course of the trading session on Tuesday as the 4200 level continues to be a massive resistance barrier. The 4200 level seems to be a bit of a brick wall at this point in time, but I do think that there will be an attempt to break above there. At this point in time, the market will more than likely continue to see a lot of buyers underneath based upon value, as we have been in a massive uptrend. That being said, the size of the candlestick does suggest that maybe we have a little further to go, and the 4100 level would make quite a bit of sense for a support level. If we break down below there, then we have the 50 day EMA which is sitting right at the gap near the 4000.
S&P 500 Video 05.05.21
If we can break above the 4200 level, the market is very likely to go looking towards the 4400 level as this market tends to move in 200 point increments. That of course is something that we have observed all the way up, and as we are in a massive uptrend there is no reason to think that we are going to change anytime soon. Liquidity continues to drive the market higher, and therefore it makes quite a bit of sense that we would see a continuation of what has been the case for so long. With this being the case, I like the idea of looking for value and it is possible that we will in fact see that continue to be the case. I have no interest in shorting this market.
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