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S&P 500 Price Forecast – Stock Markets Quiet on Tuesday

By:
Christopher Lewis
Published: Oct 20, 2020, 15:18 UTC

The S&P 500 gapped higher to kick off the trading session on Tuesday, and then rallied ever so slightly.

S&P 500

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The S&P 500 has gapped higher to kick off the trading session on Tuesday, reaching towards the 3450 level as the markets are waiting to find out whether or not the United States will do more Covid relief stimulus. Ultimately, this is a market that should continue to see buyers given enough time, especially if we get more of that cheap money. That being said, the 3400 level underneath should be massive support, so if we were to break down below there then the next buying area could be the 50 day EMA, followed by the uptrend line that I have marked on the chart.

S&P 500 Video 21.10.20

On the other hand, we could just go straight up in the air, but I think the 3500 level will be massive resistance. If we were to break above there, then it gives the market a good opportunity to go looking towards the highs again. That being said, I think we have a lot of volatility between now and the election, and of course the stimulus questions will cause issues. Because of this, I am cautious about putting too much money into the market, due to the fact that the headline risk is so great.

That being said, the market has recently made what could be thought of as forming a “double top”, but I think it is a bit of a stretch at this point. That being said, the market continues to be very noisy and therefore I think you need to be cautious about position size more than anything else.

For a look at all of today’s economic events, check out our economic calendar.

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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