S&P 500 Price Forecast – Stock Markets Test Previous Trendline
The S&P 500 has rallied a bit during the course of the trading session on Tuesday to test the previous uptrend line that had been so dominant for this market over the last several months. It is also worth noting that the 50 day EMA sits just above that uptrend line and has offered a bit of resistance during the session. Because of this I think that the market probably has a lot of work to do but if we can take out the 50 day EMA on a daily close to the upside, that would be very bullish.
S&P 500 Video 22.09.21
On the other hand, if we were to turn around a break down below the lows of the trading session on Monday, then it opens up even further downside, perhaps the market reaching towards the 4200 level. The 200 day EMA sits at the 4108 level, and is racing towards that 4200 level as well. All things been equal, this suggests that the market is more than likely going to see some buying pressure in that area. Nonetheless, if we break down below the last couple of days, I will be a buyer of puts but will not short the market straight out as there seems to always be some type of narrative for the market to go higher.
All things been equal, this is a market that has desperately needed a pullback, and it looks like we are finally starting to get a little bit of negativity. Nonetheless, pullbacks tend to be shorter every time we get one, so whether it makes sense or not, the market is one that simply goes higher over the longer term.
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This article was originally posted on FX Empire
