S&P 500 Price Forecast – Stock Markets FallStock 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.
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.
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