S&P 500 Price Forecast – Stock markets rally on Friday

Stock markets recovered a bit during the day on Friday, breaking the top of the candle stick from the previous session which of course is a bullish sign. At this point though, it looks a bit choppy.
Christopher Lewis
S&P 500 daily chart, August 19, 2019

The S&P 500 rallied a bit during the trading session on Friday, breaking above the top of the candle stick from the Thursday session showing a bit of a recovery. At this point, the market is bouncing around between the 50 day EMA and the 200 day EMA below. At this point, we have seen a nice return on the S&P 500 for the Friday session, and it looks likely that the market is going to stay in the consolidation area that we have seen between the 200 day EMA and the 50 day EMA. Ultimately, this is a market that has a lot to worry about, but it does look like we are trying to stand our ground now.

S&P 500 Video 19.08.19

At this point, it’s likely that if we can break above the 50 day EMA we may make a return to the 3000 handle. Ultimately, I think that the market will probably continue to be very volatile, but this is a good sign. There are a lot of negative headlines out there so be careful about listening to too much, and only pay attention to what the market actually does. In the short term I think we have gotten a bit of a boost due to options expiration and of course people may be a short covering into the weekend. One thing is for certain though, we are looking a bit more bullish suddenly as we are forming to hammers in a row on the weekly chart. If we were to break down below the candle stick from the Thursday session, that would be a very negative sign.

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