S&P 500 Price Forecast – Stock markets quiet on Tuesday

Christopher Lewis

The S&P 500 went back and forth during the trading session on Tuesday, dancing just below the 50 day EMA. By doing so, this is a market that looks very likely to continue struggling all things being equal. I believe that the 2950 level above is going to continue to cause quite a bit of resistance, so we were to break above there it would be an extraordinarily bullish sign. At that point, I would anticipate that the market is probably going to go to the 3000 handle.

S&P 500 Video 21.08.19

Looking at this chart, we could drop down towards the 2850 handle, which has been supportive as of late. Ultimately, I believe that the market continues to find this area comfortable, but it’s only a matter time before we have to make some type of decision for a longer-term move. Once we do, it should be a big move. To the downside, the 2750 level would cause quite a bit of support and breaking through there could be a very negative turn of events leading into a bit of a bear market.

Another thing that concerns me is that the bond markets have found quite a bit of a bid as of late, and therefore bond traders don’t like the idea of taking on risk at this point either, as they continue to buy paper. That of course is a negative sign as well. That being said, if we break 2950 it will be bullish and simply a sign that we are going to pick up another 50 points.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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