The S&P 500 has rallied a bit during the week but gave back some of the gains as we continue to see noise right around the 3280 level. That being said, we are in the midst of earnings season so it could be a major problem. Nonetheless, this major problem is probably short-term at best and I think that we will more than likely see plenty of buyers on any type of pullback. Earnings season causes a lot of noise, but at the end of the day the only thing that truly matters is that the Federal Reserve is still pumping the markets full of liquidity.
S&P 500 Video 03.08.20
The markets continue to see a lot of noise going forward, but I think given enough time it is likely that we will see buyers at lower levels, closer to the 3100 level. On the other hand, if we break above the 3300 level, it is likely that we will continue to go towards the gap above, perhaps even the 3400 level above which is a large, round, psychologically significant figure. That was the all-time high, so if we blow through there then we will of course continue to go much higher but I think we may be taking a little bit of a breather as we listen to the earnings season reports, perhaps giving people a bit of a pause at this point as to putting more money to work. With this, I have no interest whatsoever in trying to short this market, regardless of what is going on in the “real world.”
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This article was originally posted on FX Empire
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