S&P 500 Price Forecast – Stock markets recover after jobs figure

The stock markets initially fell during trading on Friday, reaching down towards the 2900 level. The US jobs number came out slightly lower than anticipated, but with many revisions to the upside from previous months. Beyond that, unemployment has dropped to the lowest level since 1969.
Christopher Lewis
S&P 500 daily chart, October 07, 2019

The S&P 500 has shown signs of life again during the trading session on Friday, reaching down towards the 2900 level, and then rallying towards the 2940 level, an area that I think will cause a bit of resistance. Beyond that, the 50 day EMA is just above, so obviously we have a bit of a fight ahead of ourselves. Short-term pullbacks should show signs of support though, and I do think that it’s only a matter of time before buyers will come back in and try to pick up value. I also recognize that the 200 day EMA has offered a nice supportive action as well, as the market has bounced quite nicely from there.

S&P 500 Video 07.10.19

If we can break above the 2940 level and perhaps more importantly the 50 day EMA, then it’s likely that the market goes looking towards the top of the candle stick from the Tuesday session, essentially the 2980 handle. As the Federal Reserve is expected to continue to cut rates, it makes sense that perhaps stock markets will benefit from this as well. With that being the case, I am a buyer of dips but I also recognize that headlines will continue to be very choppy and difficult with this market. With a jobs market that is reasonably decent, the idea of course is that the US consumer will continue to drive economic growth forward. While the GDP of the United States has been slowing down, it is still essentially “the only game in town” as so many other economies have struggled.

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