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S&P 500 Price Forecast – Stock markets continue to hover around the highs

By:
Christopher Lewis
Updated: Jul 8, 2019, 17:28 UTC

Stock markets fell a bit during the early trading on Monday but continue to hover around the highs in general. The 3000 level above is major resistance from a psychological standpoint but does more than likely present a juicy target as well.

S&P 500 daily chart, July 09, 2019

The S&P 500 went back and forth early on Monday but ended up selling off a bit as we cannot quite build up the momentum to break out above the psychologically important 3000 handle. If we can break above there, then it’s very likely that we will continue to go much higher as it will open up a flood of fresh new buyers. Pullbacks at this point will more than likely attract buyers, especially near the 2950 level which should be important due to the fact that it is a gap.

S&P 500 Video 09.07.19

With that in mind I like buying dips and I do think that it’s only a matter of time before we break out to the upside and continue to go higher. That being said, it’s not necessarily easy, nor is it something that’s likely to happen right away but I do think that the buyers will come back. The 50 day EMA is closer to the 2900 level, and that should in fact be very supportive as well. Ultimately, the market has been so bullish as of late and of course with the Federal Reserve looking to cut interest rates, I don’t have any interest in shorting, at least not quite now.

It seems as if nobody on Wall Street cares about whether or not the economy is doing well or anything else. It’s more or less all about whether or not the Federal Reserve is going to cut interest rates. Don’t let anybody fool you, this is a game about liquidity and nothing else.

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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