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S&P 500 Price Forecast – Stock market has rough day

The stock market had a rough day during the trading session on Tuesday, breaking below the bottom of the shooting star from the previous session. This of course is very negative, but there is still a ton of support underneath.
Christopher Lewis
S&P 500 daily chart, October 09, 2019

The S&P 500 initially tried to rally to the upside overnight, but then found the 2940 level to be resistive, just as the 50 day EMA has. Since then, we have broken down towards the 2900 level, and of course there is a significant amount of support underneath at the 200 day EMA. All things being equal, this market probably recovers, but if it does not, then we need to pay attention to the uptrend line. A break down below there opens up the “trapdoor” the sellers are looking for.

S&P 500 Video 09.10.19

At this point, if we find some type of supportive candle stick, then it’s probably worth having a go at a short-term bounce, as we continue to kick around the stock markets. Ultimately, the US/China trade situation continues to cause a lot of issues, so ultimately I think that we will continue to have a lot of choppiness, and ultimately it’s likely that the conditions will be difficult and short term, so keep in mind that you should not hang on to a position for too long unless of course we get some type of resolution to the US/China situation. I don’t expect that, and if we do get something this week it will more than likely be a major issue. With this, we are still in and uptrend and we certainly have quite a bit of pressure coming, so it’s likely that we are going to remain stuck between the two moving averages on the chart, the 50 day EMA and the 200 day EMA.

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