S&P 500 Price Forecast – Stock markets finding support

The S&P 500 went back and forth during the trading session on Wednesday, as we are dancing around the 50 day EMA. Ultimately, this is a market that continues to see a lot of noise in general, and we are testing the psychologically important 2950 level as well. Because of this, it’s likely that the market will continue to be very noisy based upon the headlines coming out of the impeachment process, the US/China trade situation, and of course economic conditions around the world continuing to decelerate. There are a lot of questions out there when it comes to the global markets, but the one thing that you can see is that we are clearly still in and uptrend even though we’ve had a nice pullback.

S&P 500 Video 26.09.19

The previous area of consolidation starts at roughly 2950 and extends down to the 2825 level. At the very least the 2025 level, if perhaps not even the 2800 level. At this point, it could send the market looking towards the 3100 level above. With this being the case, longer-term traders are probably looking at this as a potential value trade, but the 50 day EMA is likely going to continue to be important. If we were to break down below there, then somewhere in the consolidation we will probably turn back around, but all things being equal it’s likely that the value hunters are trying to come back into the market, as there was certainly an overreaction to the impeachment headlines coming out during the trading session on Tuesday. After all, there is a long road ahead before any type of impeachment happens.

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