S&P 500 Price Forecast – S&P 500 gives back gains

The S&P 500 initially tried to rally during the trading session on Wednesday but turned around of form a negative candle stick. The 50 day EMA is just below, which of course is a major source of support. If we can break down below there, then we will face the 2600 level to the downside that should also offer support. If we were to break down below that level, then we could roll over rather drastically. I think the market is without a doubt very fragile at this point, but we also could see bullish pressure depending on what the earnings season brings.

S&P 500 Video 24.01.19

At this point, I believe that the 2700 level above being broken would be a very bullish sign and could send this market towards the 2800 level. In the short term, I believe we are simply bouncing around this area and looking for some type of directionality. We have had a major rally after a sharp selloff, but quite frankly the volume has been a little lighter than the selling was. Because of this, I think confusion reigns and there are a lot of moving pieces out there that will continue to cause major problems. I suspect that you are probably better off waiting for some type of impulsive candle to follow, meaning a large one that breaks out of this 100 point range we are currently stuck trading in as the market is simply directionless over the last couple of days.