S&P 500 Price Forecast – S&P 500 rallies again on Monday

The S&P 500 initially dipped a bit during the trading session on Monday, but then turned around to break above the 20 day EMA, reaching towards the 2600 level. For me, this is major resistance which should be very difficult to break above as it was such a massive support level that previously held the market up. If we get some type of exhaustive candle in that area, I would not hesitate to short the S&P 500 as there are a lot of issues out there that could weigh upon the S&P 500. Beyond that, there is also the 50 day EMA which has been reliable just above there, and I think that some type of sell signal in that area would be ideal.

S&P 500 Video 08.01.19

If we break above the 50 day EMA, that could send the market much higher, but right now I think we are very unlikely to see that happen without a significant fight. Ultimately, this is a market that I think is going to continue to be very volatile, but I also think that there is a lot of negativity out there that could jump right back into the market. Ultimately, I think that although the last couple of sessions have been rather strong, I also recognize that there is a strong possibility that we will get a headline, perhaps out of China and the meeting between the Americans and the Chinese, that sends the market’s right back down. All it would take is some type of negativity.