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S&P 500 Price Forecast – stock markets continue to fall apart

The S&P 500 continues to show signs of weakness during the day on Thursday, as the Federal Reserve has shocked the market by not being “dovish enough.” At this point, it looks like we are going to fulfill a technical move to the downside.
Christopher Lewis
S & P 500 daily chart, December 21, 2018

The S&P 500 fell again during the trading session on Thursday, breaking through the 2500 level early in the day. It looks likely at this point that we will continue to see a lot of selling pressure between here and the 2600 level, and signs of exhaustion between here and there should be pounded to the downside. I think that based upon the previous consolidation area between the 2600 level and the 2800 level above, we should get a 200 point move based upon the breakdown. That extrapolates to a move to the 2400 level.

S&P 500 Video 21.12.18

Ultimately, if we break down below the 2400 level, things could get truly ugly at that point. I think we are due for a short-term bounce but look at that bounce as an opportunity to start selling yet again. Ultimately, the S&P 500 is showing the reality that the global slowdown could be picking up, and of course we have to worry about trade tensions. Ultimately, the 50 day EMA is turning lower yet again, and that suggests that the downtrend is still very much intact, and the market looks very likely to go to the downside further. It’s not until we break above the 50 day EMA that the buyers will be able to take control of this market and perhaps induce some type of relief rally of significance. The market looks horrible, and nothing has changed during the Thursday session, and as we go into the year and I think a lot of people are hiding their accounts into cash.

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