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S&P 500 Price Forecast – Stock markets continue to press resistance

By:
Christopher Lewis
Updated: Mar 5, 2019, 17:28 UTC

The stock markets continue to press resistance above, as we initially pulled back but only turned around to reach towards the highs. The market has major resistance near the 2800 level, and this has been shown more than once.

S&P 500 daily chart, March 01, 2019

The S&P 500 initially pulled back a bit during the trading session on Thursday but continues to see a lot of buying pressure to reach towards the 2800 level. At this point, if we can break above the 2820 level, then the market will break out significantly. It’s obvious that there are buyers underneath so pullbacks are thought of as a short-term buying opportunities. At this point, if we can break out above the Monday hi, that is a great proxy for busting through resistance.

S&P 500 Video 01.03.19

However, if we take out the bottom of the Wednesday candle stick, then we will break down and reach towards the 2775 handle, possibly the 2750 handle. At this point, the market is trying to break out to the upside, so pay attention to any impulsive candles that we see to the upside. However, an impulsive candle stick to the downside is a very negative sign as well.

Looking at this chart, it’s obvious that we need to make some type of impulsive move to start putting a lot of money to work. At this point, it’s literally a 50-50 shot as to where we go next. It does look like tenacity continues to push higher, but until we get clarity a sudden headline could turn things back around on you, so of course caution will be needed. At this point, I put the odds of a move higher at about 60%, which isn’t enough to put money to work. I am currently on the sidelines and letting the market tell me what’s next.

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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