S&P 500 Price Forecast – S&P 500 choppy to close the week

The S&P 500 went back and forth during the trading session on Friday, testing the 2500 level. This is an area that of course has a large, round, psychological importance to it, so therefore it’s not surprising that we struggle.
Christopher Lewis
S & P 500 daily chart, December 31, 2018

The S&P 500 went back and forth during the 2500 level, which of course is a major round figure. I think if we can break above the top of the candle stick for the Friday session could send this market looking towards the 2600 level, based upon the weekly set up that we are seeing. If we do pull back from here, I suspect that the 2400 level will offer massive support, and I also believe that the 50 day EMA above could offer resistance as well. I think we are looking at a short-term pop waiting to happen, because quite frankly we had been a bit oversold.

S&P 500 Video 31.12.18

I anticipate a short-term pullback, followed by a rally. However, if we break above the top of the Friday candlestick, I’d would be more than willing to jump in right away. I would also be more than willing to short this market at the 50 day EMA, at the first signs of exhaustion. If we close on the daily candle stick above the 50 day EMA, then I’m willing to start going long, perhaps reaching towards 2700, maybe even the 2800 level after that.

This is the time of year where a lot of large funds have to put money to work, so is very possible that we will see a lot of money tossed into the market, and that by itself should list the indices in the short term. The question of course is whether or not we can sustain any type of buying pressure?

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