S&P 500 Price Forecast – stock markets rally yet again

The S&P 500 rallied during the trading session on Wednesday, breaking towards the 50 day EMA, which of course will attract a lot of attention. However, we are starting to break above the 2600 level, so I think if we get a daily close above this area, then things will get interesting. Remember we are in the middle of earnings season though, so it’ll be interesting to see how things play out. I think there is a lot of noise between here and 2700, but that very well could be where we are heading.

S&P 500 Video 17.01.19

If we close the day below the 2600 level, that would show that there is significant resistance above, and it could spell trouble for traders. I believe at this point it’s very likely that the market will continue to be noisy, and of course there are a lot of concerns out there but the Federal Reserve sounding a bit more dovish certainly has helped. With that in mind, I believe that the buyers probably have the upper hand, but I also recognize how precarious the market is in this area. I think it would only take one bad hint of trouble between the Americans and the Chinese turn things around again. Nonetheless, I see a lot of resistance just above, so if we can close above that moving average, and with conviction – in other words towards the top of the candle – that I think the buyers have it. Otherwise, a pull back to the 20 day EMA makes sense.