The S&P 500 has rallied a bit during the course of the trading session on Tuesday, breaking above the 4700 level. That being said, we are above the bullish flag, and it suggests that we should continue to go much higher. At this point, the market looks as if it is aiming for the 5000 handle based upon the pole of the flag. That of course is a longer-term target, and it is going to take some time to get there, but it is the end of the year, and quite frankly most of the time this is where we see the “Santa Claus rally”, as the largest fund managers out there trying to make up for underperformance. In other words, they start to chase stocks.

S&P 500 Video 17.11.21

Even if we do break down from here, the 4600 level should be supportive, especially as the 50 day EMA is starting to reach to the upside. With this, I think that this is a “buy on the dips scenario, and it is only a matter of time before we go much higher. Ultimately, you cannot short this market, as it is far too bullish, and of course there are a lot of reasons to think that the poultry interest rates will continue to cause money to flow into stocks, because quite frankly “there is no other alternative.” That being the case, any dip will be thought of as an opportunity, and even though there is a “wall of worry” that you need to work through, but that is true just about any time there is a bullish move.