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Christopher Lewis
S&P 500 Price Forecast - Stock Markets Fell Yet Again On Tuesday

The S&P 500 fell during the trading session on Tuesday, breaking below the 3100 level as Donald Trump suggested that perhaps the China deal would be better off after the presidential election. This of course is nonsense, but the algorithmic traders out there went wild. One thing is for sure, it certainly rattled a few nerves but quite frankly I think this is a market that was looking for some type of reason to selloff. It had gotten ahead of itself, and the fact that the brutality was so quick and then suddenly slowed down is probably a sign that there are still plenty of buyers out there lurking, and quite frankly a lot of traders out there have missed out on the rally that never tried to stop. There will be a lot of year-end position padding, as traders will have underperformed for their clients.

S&P 500 Video 04.12.19

That being said, we could continue to go a little bit lower, but I think there is a ton of support waiting to happen near the 50 day EMA, and of course the 3030 level. With that, it’s likely that we continue to see buyers pick up this market “on the cheap, so therefore this pullback is looked at as a value proposition from what I can see. I would not be a seller at this time, at least not until we break down below the 200 day EMA which seems very unlikely to happen anytime soon. Simply looking for a bounce is what most traders will be doing, as this is certainly a bullish market, but at this point it’s likely that the market will continue to be looked at through the prism of the longer-term trend higher. The Federal Reserve is on the sidelines and willing to do what it takes to keep the market higher, and that’s all that matters.

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