The S&P 500 has rallied just a bit during the course of the trading session on Monday but has also given back quite a bit of the gains to show signs of hesitation. When you look at the longer-term chart though, you can clearly see that the market had formed a massive bullish flag. The massive bullish flag measures for a move well above the 4800 level, so I think that it is likely that we continue to see plenty of value every time we see a little bit of a dip. The 4600 level underneath should be supportive, especially as the 50 day EMA is racing towards it.

S&P 500 Video 16.11.21

Looking at this chart, I have no interest in shorting, but I do recognize that any time we pull back there should be plenty of value hunters out there. The trend is most certainly bullish, and therefore I think that it is all but impossible to short anytime soon. In fact, it is not until we break down below the 4250 level that I would consider anything bearish happening. The market has gotten a bit ahead of itself of the last several weeks, but it looks like the noise we have seen of the last couple of days have simply been a matter of digesting the move. I think that continues, but we may have some growing pains along the way. I still have a target of at least 4800, and quite frankly I think 5000 is much more likely. That being said, the market will continue to pay close attention to the earnings season noise, which of course has been relatively bullish.