FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
19,126,193Confirmed
714,022Deaths
12,272,098Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
S&P 500 daily chart, August 23, 2019

The S&P 500 initially tried to rally during the trading session on Thursday but found enough resistance above the 50 day EMA to turn things around and show signs of weakness again. That being said, I think at this point we are simply looking at the market consolidating again which makes quite a bit of sense considering that central bankers are meeting in Jackson Hole over the next 48 hours. Ultimately, I think that the market is waiting to figure out what the central bankers are going to do, with a hope that there will be some type of stimulus on a multi-front type of move. Looking at this chart, it’s obvious that there is a certain amount of support below at the 200 day EMA, which of course attracts a lot of attention for systematic traders. At this point, I think we are going to continue to go back and forth until we can make some type of decision based upon a reaction to the central bankers and their statements.

S&P 500 Video 23.08.19

The 2950 level above is resistance, and if we can break above there it’s likely that the market will go looking towards the 3000 level. To the downside, if we were to break down below the 200 day EMA, we could reach down towards the 2750 level. All things being equal though, I think the one thing you can probably count on is going to be a lot of volatility and noise, so keep your position size small. In the meantime I suspect we just bounce around in this huge range.

Please let us know what you think in the comments below

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk