FXEMPIRE
All
Corona Virus
Stay Safe, FollowGuidance
World
12,755,470Confirmed
565,403Deaths
7,444,555Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
S&P 500 daily chart, September 16, 2019

The S&P 500 rallied a bit during the trading session on Friday, reaching towards the highs again, before giving up some of the gains. Market participants continue to look to the Federal Reserve and whether or not they will support the market, but I think it’s been shown more than once that they will. At this point, the market would of course represent a better value than trying to earn yield from bonds. All things being equal, the market looks as if it is a little bit extended though, so at this point look for value. The setup is quite simple, we either find buyers underneath looking to pick up that value, or we break above the top of the shooting star and the highest to send a rush of new money into the market.

S&P 500 Video 16.09.19

More than likely, we will break out given enough time but then again it doesn’t necessarily have to happen immediately. Pullbacks to the 50 day EMA could make sense as well, as we await what comes next with the Federal Reserve. If the Federal Reserve does not cut interest rates and don’t sound quite dovish enough, that would be very negative for stock markets, and that of course is something that they won’t make the mistake of doing. The stock markets are going to go higher, unless of course something breaks down between the US/China situation which is the one wildcard it seems almost constant.

Please let us know what you think in the comments below

Advertisement
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

Trade With A Regulated Broker

  • Your capital is at risk