S&P 500 Price Forecast – SP 500 choppy in holiday trading

The S&P 500 gapped lower in electronic trading during the Asian trade as the US and China have throne tariffs at each other again. Because of this, it makes sense that we will continue to see a lot of noise in this market and then therefore volatility.
Christopher Lewis
S&P 500 daily chart, September 03, 2019

The S&P 500 has gapped lower to kick off the trading session on Monday as the United States and China both have slapped more tariffs on each other. By doing so, it has throne even more uncertainty into the markets, with perhaps the exception of knowing that things are about to get worse, not better. This will weigh upon the S&P 500 when larger traders come back to work, but at this point it’s obvious that we have some work to do.

S&P 500 Video 03.09.19

With it being Labor Day, it makes sense that the markets would be all over the place as they would’ve been easily manipulated. With the jobs number coming on Friday, it’s hard to imagine a scenario where we break out or break down significantly. Looking at this chart, you can see that the 200 day EMA and the 50 day EMA both have been offering market reactions, and at this point I think it’s likely that we go back and forth but ultimately I do think that we will get some type of decision after the jobs number. One thing is for sure though, it seems as if there are a lot more negative headlines out there than positive, so I favor shorting exhaustive candles above.

If we do fall from here and find plenty of support near the 2850 level, then I could be convinced to start buying but at this point I also recognize that it’s difficult to imagine a scenario where you can jump “all in” in this market.

Please let us know what you think in the comments below

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