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

The S&P 500 initially fell during the trading session in the futures contract on Wednesday, but you can see has recovered a bit as the Americans have come back on, but the 200 day EMA continuing to attract a lot of attention. At this point, it’s literally a 50-50 chance as to whether we go higher or lower, as market participants don’t really know what to do. We are still in a long-term uptrend, although we have done an intense amount of technical damage to it. We are presently dancing around the 61.8% Fibonacci retracement level, and I think that is going to be the case going forward.

S&P 500 Video 08.08.19

The 2800 level underneath will attract a lot of attention, just as the 2900 level above will. I think the market probably chomped around until we get some type of certainty in one direction or the other so therefore I think you are still probably better off waiting on the market to prove itself before putting money to work. Making things worse is the fact that we are in the middle of August, and that of course is holiday season so you have to worry about whether or not big positions will be put on. This should only add to the volatility but I think once we get back to September, things will probably become very strong in one direction or the other. The market just “feels” like it’s at a tipping point.