The S&P 500 has initially pulled back during the course of the trading week but has turned around as earnings season kicked off on Thursday with banks reporting stronger than anticipated earnings. With that being the case, the market has turned around and broke above the 4450 level, closing towards the very top of the candlestick. That is a very good sign and I think that it is only a matter of time before we go looking towards the all-time highs.
S&P 500 Video 18.10.21
That being said, the market continues to look very bullish, and therefore I have no interest whatsoever in shorting it. In fact, it is not until we break down below the 4250 level that I would consider buying puts, which is as bearish as I get with US indices as they are highly manipulated. If we do break down below there, then I am willing to buy puts, perhaps aiming for the 4000 handle. On the other hand, when we rally at this point, I think 4600 gets targeted almost immediately, and then we just simply break out in more of a “buy-and-hold” type of market. With that being said, the stock market only goes up over the longer term as everybody has been talking about over the last couple of years, and that does not seem to have changed.
The US dollar is starting to fall as well, and as a result it is yet another reason to think that this market is going to continue to go higher, and with that in mind I think there is just no argument to be made for bearish pressure.
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This article was originally posted on FX Empire