S&P 500 Price Forecast – Stock Markets Fall

Stock markets fell during the trading session on Thursday, reaching down towards the 2700 level in the S&P 500. This is an area that should cause a lot of attention because the fact that it is a large, round, psychologically significant figure, but we also have a major moving average in the neighborhood.
Christopher Lewis
S&P 500 daily chart, February 08, 2019

The S&P 500 fell rather hard to kick off the day on Thursday, after forming a less than impressive candlestick for the Wednesday session. The downtrend line that I have drawn on the chart is a potential downtrend line, depending on how the day flushes out. However, the 200 day EMA just below is going to be supportive as well, so it’s very likely that we are going to have a fight on our hands. I would not be surprised at all to see a pullback anyway, because quite frankly this is a market that has gone pretty far in a relatively short amount of time.

S&P 500 Video 08.02.19

The one thing that does have me concerned is that the volume to the upside is much lower than the volume to the downside from where we sold off, so I think at this point it’s likely that a pullback is going to be needed in order for people to build up enough momentum to try to break above this trendline. Just below, I would anticipate that the 2660 level should be supportive based upon the 20 day EMA, but if we are to break down below there we could continue to go even lower. I think we are at a crucial inflection point when it comes to the S&P 500, so I would be very cautious at this point about going long. That being said, going short of this market isn’t easy to do either. I think you are probably better sitting on the sidelines.

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

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US