S&P 500 Price Forecast – Stock Markets Continue to Look VulnerableThe stock markets have drifted a little bit lower on Tuesday, reaching down towards the 50 day EMA again. The 3400 level seems to be offering resistance.
The S&P 500 has rallied slightly to reach towards the 3400 level again, only to pull back and show signs of resistance. Underneath, we have the 50 day EMA which of course is a significant technical indicator that a lot of people pay attention to, so I think we have noise just waiting to happen. With this in mind, I like the idea of waiting for a little bit more of a deeper correction in order to take advantage of value. The uptrend line underneath should be supportive as well, so I think that given enough time we should continue to find buyers underneath. The market will continue to be noise just waiting for an election, so it is difficult to imagine a scenario where we have enough clarity to get involved.
S&P 500 Video 28.10.20
I am waiting for some type of daily candlestick to start buying, and at this point in time it is simply a waiting game more than anything else. Ultimately, this is a market that I do think that will try to go to the upside, but even if we do break down it will end up being a buying opportunity as somebody somewhere will certainly come in and try to save it. The 200 day EMA is near the 3200 level, so that is what I would consider to be the “bottom” of the market as it is not only a significant important indicator, but it is also the previous pullback. Ultimately, this is a market that I think continues to be very noisy, but eventually we will find enough value.
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