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

The S&P 500 has gone back and forth during the trading session on Monday, as traders have to weigh out several different situations at the same time. We obviously have the US/China trade relations going on, but we also have the PMI numbers being a little less than thrilling.
Christopher Lewis
S&P 500 daily chart, June 04, 2019

The S&P 500 has been all over the place during the trading session on Monday, as we have no idea whatsoever as to what’s happening next. There are two camps of thinking at the moment, one that suggests that the economic conditions are about to get worse, and therefore it works against the value of stocks. However, there’s also the argument that the Federal Reserve is going to step in and save the market, so there’s also that potential as well.

S&P 500 Video 04.06.19

The fact that we recovered after gapping lower at the Asian open is a good sign, but one would have to think we are only one bad announcement from falling apart yet again. That being said, this is a mess just waiting to happen so be cautious and keep your position size small. Beyond all of this, keep in mind that Friday is the jobs number in the United States, so therefore between now and then markets could be a bit skittish.

To the upside, the 2775 level is major resistance, so a break above there allows the market to go looking towards the 2800 level. To the downside, the 2750 level will be supported, so a break down below there could open the door down to 2725 or so. Either way, this is a market that’s going to be very range bound in tight. I would keep my trades small and take my profits as they come.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US