S&P 500 Price Forecast – Stock markets continue to show strength

The S&P 500 has rallied a bit during the trading session on Friday, testing the highs again. This is a market that I think continues to show bullish momentum, and at this point I think it’s likely that short-term pullbacks will be bought.
Christopher Lewis
S&P 500 daily chart, July 29, 2019

The S&P 500 has rallied a bit during the trading session on Friday, reaching towards the highs again. At this point, it looks as if the market is becoming more and more comfortable for the 3000 level. That’s an area that will attract a lot of attention, because quite frankly these big “Century levels” tend to be major events.

S&P 500 Video 29.07.19

At this point, I think there’s plenty of support underneath, sitting at the 3000 level but not only just that that handle, but there is also a major gap near the 2950 handle that shows intense strength. The 50 day EMA is approaching that level, and therefore I think that will continue to hold regardless. That Hasn’t been filled though, so we could get a short-term pullback. We are in an uptrend, so we need to continue to look towards that direction. I think that we drop value hunters will come in and pick up this market.

With the Federal Reserve looking likely to cut interest rates, it’s more likely that the stock markets rally than fall, although heading into the weekend I don’t know how much risk people will be willing to take on. Nonetheless, I have no interest in shorting this market at least not until we break down below the 50 day EMA, something that seems to be very unlikely to happen in the near term. Expect volatility, but ultimately expect buyers to come in and pick up this contract when he gets cheap.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.