The S&P 500 has rallied a bit during the course of the trading session on Tuesday, as we have cleared the 4600 level. At this point time, the market is obviously in a major uptrend so there is no reason to think that we should be shorting it anytime soon. Dips continue to be buying opportunities, especially near the 4500 level. The 4500 level has a lot of psychology attached to it, but at the end of the day it is just a round figure. Because of this, I think we have a scenario where regardless of what happens next, you have to be looking for value to take advantage of.
S&P 500 Video 03.11.21
The 50 day EMA currently sits at the 4458 level and is rising as well. All things being equal, this is a market that I think eventually will have plenty of interest, and any time we pull back, it will be thought of as a value play. The market will eventually go higher over the longer term, and I think most people out there know this. Granted, we are in the midst of the Federal Reserve meeting, so there will be a lot of noise towards the end of the week, especially on Friday were we also get the jobs number, which is always apt to bring a lot of fireworks. Because of this, I think that you need to be cautious with your position size, but regardless of what you hear or see next, the reality is that this market goes up over the longer term. With that being the case, I have no interest whatsoever in trying to short this market.