The S&P 500 rallied a bit during the trading session on Wednesday, slamming into the 50 day EMA. At this point it’s obvious that the market continues to consolidate in I think with the Jackson Hole Symposium going on it’s likely that we will continue to see the marketplace throw itself around. At this point, I believe that the market is one that needs to make some type of longer-term decision. Ultimately, if we can break above the 2950 level opens up a larger move to the upside to at least the highs again. Alternately, if we break down below the 200 day EMA it could be yet another major break down, and that could send this market into more of a bear market going forward.
S&P 500 Video 22.08.19
Over the next couple of days it’s likely that we are going to see quite a bit of choppiness, so therefore I don’t necessarily think that we are going to break out in the short term. That being said, you should keep your position size rather small, or trade options if you have that ability and something along the lines of the SPY ETF. Adding more fuel to the fire of volatility is the fact that volumes are a bit low, so that of course has an effect on how the market moves also. At this point, I believe that the market will remain somewhat range bound for the next couple of days. Later this week though, we may begin to get some type of clarity. Until then, caution is the most important thing.
This article was originally posted on FX Empire