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The S&P 500 initially pulled back a bit during the course of the week to reach down towards the 4100 level. The 4100 level has been supportive more than once, and therefore I think it is only a matter of time before buyers come back in, just as we have seen. By rallying the way we have, it looks like we are going to clear the 4200 level finally and continue to go much higher. With that being the case, the market is more than likely going to go looking towards the 4400 level which makes sense as this market does tend to move in 200 point increments.
S&P 500 Video 10.05.21
With the wave liquidity seemingly never-ending, traders will continue to bet on stock markets going higher. I have no interest in shorting this market, and quite frankly never do. The 4000 level underneath is the “floor the market”, so if we were to break down below there then I will be a buyer of puts more than anything else. I have no interest whatsoever in trying to short this market, and therefore I am simply looking for a buying opportunity on pullbacks. All things been equal, the market is likely to continue to see value hunting every time we fall. The market is likely to extend the overall uptrend that we have seen and therefore I think it is only a matter of time before we see higher levels. In fact, with the way the markets are manipulated it is very difficult to imagine a scenario where I could short.
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This article was originally posted on FX Empire