S&P 500 Price Forecast – Stock markets continue to chop

The S&P 500 went higher during the trading session on Wednesday but found resistance again at the 2940 level. As the US and China are heading into negotiation, it’s likely that we will continue to get a lot of choppy and back and forth.
Christopher Lewis
S&P 500 daily chart, October 10, 2019

The S&P 500 rallied significantly during the trading session on Wednesday as we continue to see a lot of chop back and forth heading into the US/China trade war negotiations. The 2940 level has been crucial more than once and of course we have the 50 day EMA just above that could cause some issues as well. I like the idea of a short-term range bound trading, and I don’t think that we really go anywhere until the negotiations are over.

S&P 500 Video 10.10.19

The 200 day EMA underneath has been offering support, just as the uptrend line has. To the upside, the 50 day EMA and the 2940 level offers significant resistance. If we were to break to the upside, then the market might go looking towards the 3000 level after that. That’s an area that should cause a lot of resistance as well, but one thing that you should pay attention to is that regardless of all of the noise that we have been dealing with, the market should continue to go higher if you believe in the trendlines. Yes, it’s very noisy out there, but prices are higher now than they were in June. I doesn’t mean that it’s been easy, but over the longer-term if you simply bought and hold, you’ve made some money this year. Until that changes, or perhaps we break down below the trend line, you have to believe that the buyers are going to return. Granted, the US/China situation could throw a wrench in the works, but earnings season starts next week, so it’s only a matter time before the buyers come back.

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