S&P 500 Price Forecast – Stock markets hit resistance

The S&P 500 continues to go back and forth in a very choppy trading during the Wednesday session as Jerome Powell failed to lift the markets with his testimony. We have faced significant resistance at the 2800 level and drifted a bit lower since then. While we haven’t had a major flush lower, this is not a good look suddenly. At this point, if we can break above the highs from the Monday session, then we have a real shot to go higher. Until then, the market needs to prove itself. There seems to be a lot of support below at the 2775 handle, and if we can break down below there it’s likely that we could go down to the 2750 level, possibly even the 2700 level underneath which features the 200 day EMA.

S&P 500 Video 28.02.19

Speaking of that area, we have a potential “golden cross” going on, so that will be important to pay attention to as well. I think we have a lot of choppy trading ahead of us as we have so many different things moving at the same time to move the marketplace. Ultimately, this is a short-term traders market who will be looking to chop around and cause a lot of damage to accounts that are over levered. Because of this, I suspect that it’s probably best to keep your trading positions short term, and of course it essentially small as it gives us an opportunity to profit but keep the damage somewhat limited.

Please let us know what you think in the comments below