The S&P 500 initially tried to rally during the trading session on Friday but gave back early gains to show signs of hesitation. By doing so, it does suggest that perhaps the markets running into a bit of exhaustion, but you also have to keep in mind that it was options expiration. This has a lot to do with choppiness, and quite frankly it is a day that you should avoid trading the markets at all costs. Ultimately, I think we probably go looking towards the 4400 level and the 50 day EMA as potential support levels, that a lot of people will pay close attention to.
S&P 500 Video 13.09.21
Because of this, I believe that we remain a “buy on the dips” type of scenario as the markets continue to show a lot of concern. The S&P 500 is of course highly manipulated by the Federal Reserve so I would not get overly excited about any type of selling as Jerome Powell will protect Wall Street at all costs. I anticipate that any pullback at this point will offer plenty of value that you can get involved in, and most pundits on Wall Street would tell you the same.
With that being the case, I remain bullish because well, that is just how things are. If we do break down below the 50 day EMA though, I could be a buyer of puts, but that is as dangerous as I get when it comes to these highly manipulated US indices. Keep in mind that the Federal Reserve will not allow anything more than about five or 10% correction.
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This article was originally posted on FX Empire
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