S&P 500 Price Forecast – stock markets rally on Chinese news?

The S&P 500 rallied a bit during the trading session on Wednesday, reaching towards the 2600 level. The market does look rather strong as of late, but we have not broken above major resistance. This is still something that I would be paying attention to, so if we can break above the 50 day EMA, then I think we could continue to go much higher. Any sign of exhaustion in this area could be a selling opportunity though, because although the rally has been nice, it’s likely that the market will run out of steam, especially if the announcement coming out of the United States/China discussions is less than impressive. I think the market has already anticipated good news, so there’s probably more of a concern about risk to the downside and disappointed.

S&P 500 Video 10.01.19

This could also be a “sell the news” situation, so will have to wait and see. If we can get a daily close above the 50 day EMA, then I could envision buying. At this point though, unless you have Artie been long, it’s good to be difficult to get involved here. We are still very much in a downtrend, but we are at an area now that looks likely to make decisions for the longer-term move. If we roll over from here, even with good headlines come out of the US/China trade relations, then you have to wonder what’s going to bring things higher? The Federal Reserve is still likely to reduce its balance sheet, which is a lot of what the trading communities concerned about.