S&P 500 Price Forecast – S&P 500 pulled back slightly on Friday

The S&P 500 pulled back a bit during the trading session on Friday, as the 50 day EMA has offered a bit of resistance. Ultimately, what’s more important to pay attention to is whether or not we end up forming a hammer on the weekly chart.
Christopher Lewis
S&P 500 daily chart, August 12, 2019

The S&P 500 has pulled back a bit during the trading session on Friday, testing the 50 day EMA. We pulled back from there, and it shows signs of exhaustion. However, the weekly candle stick so far at least is looking to be a hammer, so if we can stay above the 2875 level, then I think it’s likely that we could make a serious attempt to break above the 50 day EMA. However, if we break down below that level it’s likely that we will go testing the 200 day EMA which is at the 2844 handle. All things being equal though, I think the market is going to try to recover but a lot of profit taking may have been done ahead of the weekend.

S&P 500 Video 12.08.19

This is going to come down to the US/China situation, and although we have seen a significant amount of selling on Friday, it still is minuscule compared to the last three days. That being the case, I like the idea of buying above the 50 day EMA if we get that opportunity. The 50 day EMA is pictured in red on the chart. Above there, then we are looking at the 3000 level, an area that of course would be psychologically important. On the other hand, if we were to break down below the 2800 level, the bottom in this market could fall out and we could go much lower. Lots of volatility awaits, so keep your position size small.

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