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S&P 500 Price Forecast – stock markets continue to show resiliency

By:
Christopher Lewis

The S&P 500 initially pulled back a bit during the trading session on Thursday but found enough support near the 20 day EMA to turn around and form a bullish candle.

S&P 500 daily chart, January 11, 2019

The S&P 500 initially pulled back during the trading session on Thursday but found enough support at the 20 day EMA to turn things back around and rally a bit. I think that the 2600 level continues to offer major resistance though, so expect to see a lot of volatility in this area. The 50 day EMA is just above there as well, so it will probably also cause a bit of trouble. Looking at this chart, I think that a break above the 50 day EMA is a massive buying signal and could get the momentum really start to fly here. I think that signs of exhaustion though could also be a selling opportunity. I think the next couple of days are going to be crucial in this market, and quite frankly you are probably better off simply standing on the sidelines and waiting for a little bit of clarity before we put money to work.

S&P 500 Video 11.01.19

If we do break down below the 20 day EMA, then I think the 2500 level will probably be targeted, perhaps even the 2400 level after that. Alternately, if we break above the 50 day EMA I think that the target initially will be the 2700 level, possibly even the 2800 level. A lot of this is going to come down to the US/China situation, as the Federal Reserve release looks to be flexible at this point, and that has given a bit of relief to the markets in the meantime. One thing I think you can count on is choppiness.

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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