S&P 500 Price Forecast – Stock market still looks vulnerableDuring the trading session on Tuesday the Americans trying to rally the S&P 500 E-mini contract, but as you can see we have given up quite a bit of the gains to fall towards the trendline again. Because of this, I think that markets have definitely seen a change in attitude.
The S&P 500 has recently been bouncing around this trendline, but the fact that we can’t hold gains for me is somewhat telling. I understand that there is a lot of support underneath, and I think that’s the only thing keeping this market afloat right now because it certainly isn’t anybody interested in buying this market. With that in mind I think that selling rallies probably works until we break above the 50 day EMA which is pictured in red on the chart. However, I don’t see an easy path lower either. If we were to break the 2800 level it could change things drastically but until then I think you might actually be better sitting on the sidelines instead of messing around with what looks like a very difficult marketplace to deal with.
S&P 500 Video 29.05.19
Low liquidity is still an issue, even after the holidays. The volume just simply as an area, as we await some type of news catalyst get the markets. With that, I suspect that we need some type of impulsive candle to tell us what the next move is. All things being equal it looks a lot like the sellers will probably prevail, but I don’t want to try to guess at a time and get hammered with unavoidable loss. My best advice is to simply sit on the sidelines and wait for a little bit of clarity, which is going to be difficult with everything that’s going on between the United States and China.
Please let us know what you think in the comments below