S&P 500 Price Forecast – stock markets rebound slightly on Tuesday

In what we seen before, the market is trying to pick up its feet a bit after a severe fall. However, I don’t see any convincing action at this point Annie think we are going to continue to drift a bit lower. It’s not necessarily that I think we are going to collapse, rather we just don’t have the momentum.
Christopher Lewis
S & P 500 Midday chart, October 30, 2018

The S&P 500 rallied to kick off the trading session on Tuesday but continues to be very noisy and have a bit of a weight around its neck. Because of this, I think that short-term rallies are to continue to bring in sellers, and after the initial rally it seems like they are more than willing to jump in. I do think that eventually we find some type of footing, but it’s obviously at lower levels as the market can’t hold itself up for any length of time. With that in mind, it’s not until we get a couple of days of stability that I think you can start to think about the S&P from the long side. The 2550 level underneath makes sense, because it is the 100% Fibonacci retracement, something that we quite often will see after breaking below the 61.8% Fibonacci retracement level.

S&P 500 Midday Video 30.10.18

Ultimately, I think the 2500 level is also a candidate for potential support, as we have seen in the past, and of course the fact that it is a large, round, psychologically significant figure. Market participants continue to be very skittish, and quite frankly with the trade war negotiations almost nonexistent, that will continue to be the case. Selling the rallies has worked, but recognize that when the turnaround starts, it will probably be quite brutal and hectic as value hunters will certainly be coming into the market. Be cautious though and let the market prove itself if you plan on trying to buy anything.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.