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Christopher Lewis
S&P 500 daily chart, August 29, 2019

The S&P 500 initially fell during the trading session on Wednesday but then recovered losses and rallied a bit by the time the US session was fully in effect. At this point, we continue to bounce around between the 50 and the 200 day EMA indicators, and we are essentially stuck in this range. Ultimately, I see a couple of levels that we should be paying attention to, as they could give us a bit of a signal as to where this market goes next.

S&P 500 Video 29.08.19

The easiest trade is to buy this market above the 2950 level, because it would show a major turnaround in attitude. At that point, it’s very likely that the market goes back to the 3100 level. However, if we break down below the 2800 level, then clearly something has gone horribly wrong, and we go looking towards the 2730 level.

In the meantime, if you are quick and agile, you could use this big range to play short-term trades in a range bound system. It really comes down to your comfort level but recognize that eventually you could pick the wrong direction. Longer-term, we need to be paying attention to the fact that we are in the last week of summer, and that of course is very typically light as far as volume is concerned. The trading year will kick off after Nonfarm Payroll number to come out next Friday. Once that happens, the volume will pick up and moves might be a little bit more believable

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