S&P 500 Price Forecast – S&P 500 Rallies From 50 Day EMA

The S&P 500 has rallied from the 50 day EMA during trading on Wednesday, slamming into the 3400 level yet again. This is an area that could be interesting, as it was such support in the past and of course the all-time high that we had recently broken above. That being said, the markets have been a bit frothy as of late and the question now is whether or not this is sustainable, or if this is simply an opportunity for those who missed a selling opportunity above to start shorting again? This has the possibility of either being a continuation or a classic “pump and dump”, and quite frankly it is too early to tell. The smart money is on the sidelines at this point because the risk is going to be so great.

S&P 500 Video 10.09.20

The candlestick is of course rather bullish looking, but we still have several hours ago, and it is likely that we are essentially one negative headline away from people dumping their stocks again. Because of this, I am very cautious about getting bullish of this market quite yet, I do think that we will have better entries down the road. It is very likely that we need to see a day or two of stability in this market before going long, because quite frankly going straight back up in the air right now would just exacerbate the fact that the market is extraordinarily unstable. While it could bring gains to your account short term, going straight back up in the air would be very concerning from a volatility standpoint. Neutrality is probably best year.

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