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S&P 500 Price Forecast – Stock markets all over the place

By:
Christopher Lewis
Updated: Aug 15, 2019, 16:23 UTC

Stock markets were all over the place during the trading session on Thursday, as they are trying to come to grips with the massive bloodshed that we had seen on Wednesday.

S&P 500 daily chart, August 16, 2019

The S&P 500 went back and forth during the trading session on Thursday, as we continue to see a lot of noise. The 200 day EMA is just above current pricing, as we continue to struggle in this area. The massive red candle stick from the Wednesday session is rather foreboding, so I think at this point it’s likely that rallies will eventually be sold. With that being the case, I’d be very surprised to see this market break above the 50 day EMA which is pictured in red on the chart.

S&P 500 Video 16.08.19

I continue to look at this market is one that could be faded on short-term charts, but quite frankly I don’t think that we are going to have an easy way in one direction or the other. With the massive candle stick though, I do think there is going to be a bit of follow-through, and at this point it would not surprise me at all to see this market reaching down towards the 2800 level, possibly even the 2750 handle.

I would expect a lot of volatility because quite frankly there are a lot of uncertainties out there that should continue to cause problems. We have the US/China trade relations mess, and further even more pressure on the bonds market. The bond market of course rallying is negative for stocks, as we see people running for safety at the moment. Stocks won’t be where they go, and quite frankly this looks like just another attempt to break down from here. Look for overextended short-term conditions to sell.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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