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

To be honest, it’s quite surprising to me just how resilient this stock market has been. There are a multitude of issues that could cause a lot of uncertainty out there, but yet here we are. We aren’t that far from the all-time high, and a very strong session could send this market right back to that level. Think about everything that’s involved right now: Brexit, US/China trade war, possible impeachment, global slowdown, a strong US dollar, bond markets that have been rallying until recently. In other words, pretty much everything that you can throw at this market that would be thought of as negative is currently happening. Yet, here we are. Sometimes it’s what a market will do that it’s much more important than what it will do.

S&P 500 Video 27.09.19

Looking at the chart, it’s obvious that the 2980 level has been important more than once. It’s an area that seems to attract a lot of attention and we are just simply meandering back and forth around it. Because of this, I think that the next couple of days will probably be back and forth but the 50 day EMA so far has held quite nicely as support. Because of this, we are probably going to see this market eventually break to the upside, because quite frankly nothing has knocked it down yet. As long as that’s the case, there’s no point in fighting the trend, even if it doesn’t make any sense.

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