The S&P 500 has gone back and forth during the course of the trading session on Monday as we continue to see a lot of noisy behavior right around the 4750 handle. This is an area that has been noisy over the last couple of weeks, but quite frankly this index are still trying to figure out where to go over the next couple of weeks. With the jobs number coming out on Friday it makes quite a bit of sense that we might be more sideways than anything else, so do not be surprised at all to see a lot of noisy behavior of the next couple of days. Regardless, this is a market that is obviously very bullish from a longer-term standpoint, so there is no point in arguing the case.
S&P 500 Video 04.01.22
The 50 day EMA is that the 4640 handle and is rising, and I believe at this point in time it is very likely to be a “moving floor” in the market. Longer-term, I do believe that the market not only takes out the 4800 level, but also goes looking towards the 5000 level, possibly sometime in spring. Between now and then, the market is very likely to be a “buy on the dips” type of attitude, which has been the way we have been behaving for the last 13 years anyway. I have no interest in shorting this market, and quite frankly do not even have a scenario where I would do so. The 4500 level at this point in time is the absolute “floor in the market.”