The S&P 500 has initially fallen during the trading session on Thursday but then turned around as we bounced off of the 50 day EMA. That being the case, I do believe that it is only a matter of time before buyers will come in on every short-term dips, just as they have for ages now. The 50 day EMA is also backed up by the uptrend line, and therefore I believe that there will be plenty of value hunters out there willing to take advantage of this. Remember, the Federal Reserve will do whatever he can to keep Wall Street flying, and the recent shenanigans coming out of the retail sector should continue to push things higher as well.
S&P 500 Video 29.01.21
The market will more than likely go looking towards the 4000 handle, based upon the previous consolidation area and quite frankly there is nothing on this chart that looks as if we are going to see a major breakdown. With that being said, I think that what we are looking at here is more of the usual value hunting and that should lead to more of a feedback loop as is typically the case in a market that is quite frankly in a bubble. Bubbles last longer than most people expect them to, so trying to time when it turns over into a major correction is a fool’s errand. Until something changes, it is difficult to imagine a scenario where we should be shorting the market. The 3800 level does seem to be a little bit of a magnet, but at the end of the day it is yet another number that we will end up blowing through.