The S&P 500 has rallied just a bit during the course of the trading session on Monday, but as you can see still hangs around the 4700 level. If we can break above there, then we can go higher but quite frankly I think it is a bit overextended at this point, as we have only printed one red candlestick in about the last 30 days or so. Because of this, I think that a pullback at this point in time makes quite a bit of sense, and therefore I will be looking to take advantage of any dip. 4600 would be an interesting place, just as the 4550 level would be.
S&P 500 Video 09.11.21
Underneath there, we have the 50 day EMA and then the 4250 handle. The 4250 level underneath is a major “floor the market”, with the 200 day EMA approaching it. It is not until we get below there that I would be concerned about the overall uptrend, but I still would not short this market. At that point I would be a buyer of puts, but that is about as bearish as I get of the US markets. I frankly, just to get down to that area would be roughly a 10% correction, which would be something worth paying close attention to. After all, that would be a standard correction, and I anticipate that a lot of Wall Street would be buying stocks at that point. More likely than not, we just get a nice little pullback that we could be buyers of, and quite frankly that something that I truly hope happens.