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S&P 500 Price Forecast – S&P 500 continues to bounce around

By:
Christopher Lewis
Updated: Aug 15, 2018, 04:35 UTC

The S&P 500 continues to consolidate based upon a couple of major levels. There are a lot of different concerns when it comes to global stock markets, so it makes sense that the S&P 500 will continue to rock back and forth due to geopolitical concerns, and of course contagion fears.

S & P 500 daily chart, August 15, 2018

The S&P 500 has tried to rally during the day on Tuesday, reaching towards the 2838 handle, before pulling back again to test the 2830 level. At this point, the market has been consolidating between the 2840 level, and the 2820 level. I think that it is only a matter time before the market goes in one direction or the other. In the meantime, I think range bound trading will probably be what we expect to see, and that makes a lot of sense as there are major concerns globally.

A strengthening US dollar of course doesn’t help stock markets, so I believe that the S&P 500 will continue to be very difficult to deal with, but in the end we are still very much in and uptrend. The question now is whether we can hold that uptrend in the short term, or if we can continue to chop around. I’m not concerned about selling, I believe that if we break down below the 2820 handle, we will also find support at the 2800 level given enough time. If we were to break down below there, then things change drastically, but until then it seems very unlikely and I think that we continue to “buy on the dips” going forward, as it should continue to push this market back towards the 2840 handle, eventually reaching as high as 2850 in the short term. After all, money keeps flowing to America in this environment eventually.

S&P 500 Video 15.08.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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