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S&P 500 Price Forecast – Stock markets break out of range and continue

Stock markets broke out during the trading session on Friday, as the jobs number came out reasonably neutral. At this point, the 3000 level above is going to be psychological resistance, and it certainly looks as if it is probably a short-term target.
Christopher Lewis
S&P 500 daily chart, September 09, 2019

The S&P 500 has rallied slightly during the trading session on Friday, as the markets continue to look ready to try to break out. The previous consolidation area has offered a 150 point range for the market and now the question is whether or not we are going to make the measured move? If we do, that means the market will be going to the 3100 level. Pullbacks at this point should be supported by the 50 day EMA, as it is starting to turn higher and it had previously been resistance.

S&P 500 Video 09.09.19

That being said, this isn’t exactly an explosive move so I think this is probably going to be more of a grind than anything else. As far as selling is concerned it’s very difficult to imagine that, at least not until we break down below the 2900 level. I think at this point we are going to see a very choppy and volatile market with a slightly upward tilt, mainly because the US/China trade situation is supposedly getting better. However, we know that we have heard good news before, only to be turned right back around. I suspect that’s probably going to be the case going forward, but in the short term it looks very likely that we continue to go higher.

Short-term pullbacks offer short-term buying opportunities but that’s probably about as good as it gets right now, as the market has so many moving pieces at any given moment, so it’s very likely that we are going to see difficult trading conditions.

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