S&P 500 Price Forecast – stock markets continue to bounce around

The S&P 500 continues to be very noisy, as we are hanging about the 2600 level, an area that had previously been massive support. That support should now be resistance, and therefore I think we will continue to see a lot of noise. This makes sense though, because we are starting earnings season, and that of course will have a major ramifications on where we go next. If that’s the case, I think that paying attention to the 20 day EMA just below, and pictured in green on the chart, as well as the 50 day EMA above, pictured in red, King give us an idea as to where to go next.

S&P 500 Video 15.01.19

If we get a daily close above the 50 day EMA, then I think the market will continue to go higher, perhaps reaching towards the 2700 level. Alternately, if we break down below the 20 day EMA, then I think we probably go down to the 2500 level. This is a market that is getting ready to go in one direction or the other with some figure, and I would also point out that this bounce has been rather nice, but on low volume. In other words, the real volume is still to the downside so I think that we are looking at more likelihood of falling prices rather than rising ones. However, I will wait for the signal to start putting money to work in what is going to be a very volatile market.