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S&P 500 Price Forecast – Stock markets continue to dance around large figure

The stock markets are essentially look at the major figure in the form of 3000 level, an area that has been an issue for the S&P 500 for the last few weeks. By looking at this level, we see just how choppy things are at the moment.
Christopher Lewis
S&P 500 daily chart, July 24, 2019

The S&P 500 has tried to rally again in early trading on Tuesday, as we continue to test the 300 level above. The markets continue to deal with earnings season, which of course has its own influence on the index and futures markets. However, lets not forget that the market care the most about the Federal Reserve cutting rates, and this is the main thing to pay attention to. The market is essentially a ‘buy on the dips’ market, and should continue to be until we get some kind of walk back about rate cuts from the Fed.

S&P 500 Video 24.07.19

The market has a massive gap underneath at the 2950 level that could offer massive buying pressure, but the 3000 level is an area that should eventually give way as the market gets comfortable with slicing through it again and again. The market should eventually look to take out the 3010 level and continue the overall uptrend. The market should continue to see a lot of volatility, but you shouldn’t fight this trend. Every time the market looked as if it were to break down, the saviors come back into play. The markets are filled with the bodies of those that have been trying to short it, going back like 12 years.

Even if we do break below the gap, there is the 50 day EMA as well, which could also offer support. The market simply has too many reasons to be buyers.

Please let us know what you think in the comments below

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