S&P 500 Price Forecast – Significant Turnaround Early in The DayStock markets initially tried to break down a bit during the Globex session in Asia, but as soon as New York came online we were off to the races.
The S&P 500 initially dipped a below the 50 day EMA on Wednesday but then broke much higher. The 3360 level was tagged almost immediately during trading, and at this point in time it is very likely that the market is going to show a lot of volatility, and I think that the 3400 level above is a significant target and could be significant resistance. Ultimately, this is a market that we have been bouncing around in for a while, and I think that the market is stuck in a 200 point range.
S&P 500 Video 01.10.20
The 3400 level above is significant resistance as mentioned previously, but the 3200 level underneath is massive support. With the 50 day EMA going sideways right in the middle of it, this shows that the market is essentially trying to figure out what to do next. I do believe that ultimately this is a scenario where the market is likely to be very volatile as we head towards the jobs number on Friday, and then of course we have to worry about the Presidential election, which is going to throw a monkey wrench into everything given enough time.
All things being equal though, we are still in an uptrend although this is a market that probably needs to build up a bit of confidence in order to go higher. If we do break above the 3400 level, and more importantly on a daily close, then it gives the market the ability to reach towards the highs again at the 3600 level. I think the only thing you can count on at this point is an extreme amount of volatility and choppy behavior.
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