S&P 500 Price Forecast – Stock markets hit bottom of the uptrend line

The S&P 500 tried to rally during the trading session on Wednesday, reaching towards the bottom of the uptrend line that I have marked on the chart. Beyond that, we have the 50 day EMA just above there but we also have the 200 day EMA just below, which of course could offer support. I think at this point we are probably going to see this market go back and forth, trying to make some type of decision. That makes complete sense considering that the Thursday session will be the day before the jobs figure, and therefore a lot of people will be looking to stay quiet ahead of that economic figure.

S&P 500 Video 06.06.19

Right now, we are still very negative looking, even though the last couple of days have been somewhat bullish. However, if we get a daily close above the 50 day EMA that could be assigned that we are going to go higher. All things being equal, I think that the sellers are starting to make their presence felt again, so I believe that 50 day EMA is essentially your “line in the sand.” That doesn’t mean that we are going to break down significantly, but certainly it seems as if the overall attitude of the market is starting to deteriorate, due to a long term standing issue when it comes to trade issues, and of course with the Federal Reserve looking to perhaps ease its monetary policy, while that could be good for stocks, that may be a bad sign for the economy.

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