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S&P 500 Price Forecast – Stock markets continue to make all-time highs

By:
Christopher Lewis
Updated: Jul 12, 2019, 16:58 UTC

The S&P 500 rallied during the trading session on Friday again, in the somewhat subdued trading. That being said, we are at all-time highs so that is worth pointing out.

S&P 500 daily chart, July 15, 2019

The S&P 500 has rallied again on Friday to show signs of strength as we have cleared the 3000 handle. This is a very bullish sign, and it does suggest that perhaps we are going to continue to go much higher. To the downside, we have a massive gap at the 2950 level that should continue to offer plenty of support so I don’t like the idea of shorting regardless. I believe pullbacks are buying opportunities that can be taken advantage of, and therefore the longer-term trend should be followed.

S&P 500 Video 15.07.19

By breaking above the top of the candle stick for the Friday session, the market could continue to go much higher, perhaps reaching towards the 3020 handle, perhaps even the 3050 level. Overall, the major EMA indicators that I follow tilt to the upside, so that of course suggests that there are buyers. That being said, if we were to turn around and break down through the gap below, that would be an extraordinarily negative sign and could send this market much lower.

All things being equal though, I do believe that we go higher based upon the Federal Reserve cutting interest rates and of course the massive liquidity injections that they are almost certainly going to be doing. With interest rates being so negative and low around the world, it’s very likely that the larger money houses in the world will continue to reach towards stocks as they are essentially going to be the only game in town. At this point in time I continue to buy dips, as they offer plenty of value.

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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