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Christopher Lewis
S&P 500 daily chart, September 04, 2019

The S&P 500 has gapped lower to kick off the trading week, rallied enough to fill that gap, and then dropped again. At this point it looks very likely that the market will continue to drop from here although I think it will be in the same consolidation area that we have been in for a while. The 2950 level above is massive resistance, just as the 2800 level underneath is massive support. Beyond that, we also have two major moving average is right in the middle of the mix, meaning that the 50 day EMA just above will continue to cause problems, just as the downtrend line will be as well. On the downside, we have plenty of support at the 200 day EMA which is closer to the 2850 level.

S&P 500 Video 04.09.19

We also have a couple of trendlines to pay attention to that show that the market is simply trying to consolidate. As we tighten up for the rest of the week, I think eventually we will either break out or break down due to the jobs number which I think at this point the next major catalyst. Having said that though, it’s also likely that the headlines could cause quite a bit of trouble as well. All things being equal, it’s very likely that the markets will be very choppy and noisy over the next couple of days, and then eventually make a decision.

Please let us know what you think in the comments below

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