S&P 500 Price Forecast – Stock Markets Continue To Grind Sideways

The S&P 500 rallied a bit during the trading session on Monday to kick off the week, breaking above the 3000 level but can’t seem to get much higher than that. A lot of psychological resistance will be felt here, and the market is simply waiting for earnings season.
Christopher Lewis
S&P 500 daily chart, October 22, 2019

The S&P 500 rallied a bit during the trading session on Monday, reaching above the 3000 handle again. This is an area that causes us quite a bit of psychological resistance though, so at this point it doesn’t seem to be a scenario where we can put a lot of faith into. Ultimately, this is a market that will show a lot of volatility and a lot of resistance above extending all the way to the 3020 level. I think it’s only a matter of time before exhaustion comes in and takes this market back down, but if we were to break out to a fresh, new high, then it’s obvious that we should be buyers. With that in mind, I believe that the market will find support at the 50-day EMA which is closer to the 2950 level.

S&P 500 Video 22.10.19

The market is rising over the longer term, so therefore you should be buying the dips, and not worrying about selling. The market is going through earnings season so that a course causes a lot of noise, but quite frankly the one thing that should be obvious at this point is that it simply won’t die. If it’s not going to fall over the longer term, then you should be looking in one particular direction, and that is going to be higher. I do not wish to short this market, at least not at this point because it has been so dangerous to do so.

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