S&P 500 Price Forecast – stock markets quiet on Thursday

We are in the middle of earnings season obviously, so it’s very interesting to see that we are simply trading water at the moment. If the market is telling us one thing, it’s simply that it doesn’t know where to go now. We have seen a significant rally after a massive selloff, but now we are simply back to where we started. In theory, that’s a very bullish sign but I also recognize that the market hasn’t really figured out what to do yet. The 2600 level underneath is supportive, including the 20 day EMA marked in green. We are sitting just above the 50 day EMA, and it’s possible that we will continue to go back and forth in this tight range. If we can break above the 2700 level, then I think the market is free to go back to the 2800 level. Currently, I believe that this market is all but impossible to trade for anything more than a quick scalp here and there.

S&P 500 Video 25.01.19

Once we get out of this 100 point range, then we could make a significant move. Until then, I think you’re going to have to be very cautious and quite frankly I would be hard-pressed to put significant money to work in the meantime. Overall, this is a market that I think continues to cause a lot of difficulty, as we have to worry about the US/China trade relations not getting any better, the US government shutdown going on, and then of course the earnings season.