S&P 500 Price Forecast – Stock markets find footing after initial drop

The S&P 500 fell initially in the E-mini contract, as Asian traders panicked. However, as more liquidity came onto the marketplace, especially considering that the Japanese were away, we started to see a bit of a recovery. This was followed through by the Americans after the Europeans picked up the ball, and it now looks as if we’re going to make a bit of a stand at 2890 or so. We did break down below there by a point or two, but in the end this candlestick is starting to turn out very bullish. It looks as if the buyers still continue to come in and pick up value as they offer it, and therefore it’s very difficult to sell this market.

S&P 500 Video 07.05.19

Because of the shape of this candlestick, I think it will catch a lot of attention so it’s very likely that we will continue to see traders come in and pick up this value. However, if we break below the bottom of the candle stick for the session, we could go down to the 50 day EMA which is pictured in red, currently testing the 2868 level. A break down below there opens up the door to the 200 day EMA which of course is even more supportive. With that being the case, it’s almost impossible to sell this market. Quite frankly, every time you tried to short this market, you’ve lost money over the last several months.

Please let us know what you think in the comments below