S&P 500 Price Forecast – S&P 500 likely to continue testing 50 day EMA

The S&P 500 initially tried to rally during trading on Tuesday, reaching towards the 3000 level as it has several times. Since then though, the market has sold off as the ISM numbers came out to disappoint but we are already starting to see the market trying to recover a bit. This is a market that is highly sensitive to risk appetite right now, and it does appear that the global economy is slowing down. However, on the other side of this equation is that the central banks around the world continue to be very loose with monetary policy, and the Federal Reserve is likely to continue to be soft on monetary policy due to yet another negative looking indication on the economy.

S&P 500 Video 02.10.19

Keep in mind that the S&P 500 has nothing to do with companies are corporate earnings, and more to do with central bank liquidity. Long gone are the days of earning seasons mattering for the longer-term move, as the central banks have distorted the markets so much. As the Federal Reserve looks to be a bit dovish, that provides a little bit of a “floor” underneath the market. Right now, I’m using the 2950 level as said “floor.”

To the upside, the 3025 level of course is resistance and of course 3000 is from a psychological standpoint. That being said, even after that anemic ISM number, the market still looks relatively healthy currently, and therefore most people will probably look at this as a buying opportunity.

Please let us know what you think in the comments below