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S&P 500 Price Forecast – Stock markets get hit early on Wednesday

By:
Christopher Lewis
Updated: Oct 2, 2019, 16:02 UTC

Stock markets got hammered early on Wednesday, reaching below the 2940 region in the S&P 500, and even broke down below the 2900 level. That being said though, the market does look as if there is still support underneath.

S&P 500 daily chart, October 03, 2019

The S&P 500 has gotten hammered during the trading session on Wednesday, breaking below the 2940 level, and reaching towards the 200 day EMA. As I record this video the candle stick is very ugly looking, but at this point you should be a bit cautious as we are approaching the 200 day EMA. That is an area that could offer massive support, so I would base any future trading decisions on the daily close of the candle stick. With that being the case, I’m particularly interested in the 200 day EMA and the trend line just below that could offer buying opportunities.

S&P 500 Video 03.10.19

Simply put, I would stand out of the way and let the market stabilize before buying. However, if we do break down below the trend line underneath, at roughly 2050, then the market could drop another 50 points rather rapidly. After that, the markets probably going to go looking towards the 2700 level. Obviously we need some type of catalyst to move in one direction or the other and right now the world is full of concern so a break down isn’t totally out of the realm of possibility. However, we have been in a nice uptrend in channel for some time but have not broken out of yet so I do remain somewhat constructive and optimistic, but I recognize that there is serious pressure to the downside currently. Earnings season coming could change everything as well, so keep that in mind as well.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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