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S&P 500 Price Forecast – Stock markets continue to grind back and forth

By:
Christopher Lewis
Updated: Jun 13, 2019, 16:50 UTC

The S&P 500 continued to go back and forth during the trading session on Thursday, as the gap below continues offer plenty of support. Ultimately, this is a market that I think continues to be very dicey and difficult to deal with.

S&P 500 daily chart, June 14, 2019

The S&P 500 has ran into the gap below and turned around during trading on Thursday, which of course is a very bullish sign. However, at this point it’s difficult to understand where we go next as there are so many different moving pieces. Quite frankly, most of the trading during the day was probably algorithmic in nature, meaning that machines were simply batting the market back and forth. If you’re looking for clarity, you aren’t going to get it right now. We are obviously winding up for some type of major move to the upside, but where that is isn’t necessarily clear at this point in time.

S&P 500 Video 14.06.19

One thing that is somewhat obvious is that the 2900 level above continues to be important, and I think that a break above that level will open up a lot of buying pressure to this market. However, it looks as if the 50 day EMA sitting at the 2850 level will be an ominous support level as well. I think we continue to see a lot of choppiness going forward, as we weigh the US/China trade tensions, the Federal Reserve, and a whole host of other things such as Brexit and other nonsense noise floating around out there.

Summertime is typically difficult as well, but I think that the reaction during the trading session on Thursday suggests that the buyers are still here and willing to jump into the marketplace based upon value. However, it’s only going to take one headline to throw the market into disarray yet again. I am slightly bullish, but I would emphasize the word slightly.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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