S&P 500 Price Forecast – S&P 500 Tests the 50 Day EMA

The S&P 500 initially tried to rally during the trading session on Tuesday during Asian trading but then collapsed through the 3400 level. Ultimately, the market is very focused on the 50 day EMA underneath so it is likely that we will see some type of buying pressure in this scenario. At this point, the market is likely to continue to see more of a “buy on the dips” mentality, so therefore that is how I am trading the market. All things being equal, I like the idea of buying dips in this market, because it is not such a strong uptrend. Furthermore, the Federal Reserve is going to come into the market and save it given enough time, so I think there is a certain amount of psychological support as well.

S&P 500 Video 09.09.20

Underneath the 50 day EMA it is likely that the 3200 level then becomes very supportive. That is an area that has been structurally supportive previously, so therefore it is worth paying attention to. I would be even more bullish in that area to be honest. This does not mean that we can break down, but when you look at the history the S&P 500, it is only had a significant long-term break down once or twice in its history. Short-term flashes can cause major trouble of course, so therefore you have to keep stop losses on of course, but ultimately, I think it is only a matter of time before we see some type of buying pressure returned to this market. Your clue will probably be the US dollar is softening a bit.

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