S&P 500 Price Forecast – Stock markets recover slightly during early hours on Wednesday

The US stock markets bounced a bit during the trading session on Wednesday as we continue to churn between a couple of major moving averages. Simply put, it looks as if stock markets don’t have anywhere to go in the short term.
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

Please let us know what you think in the comments below

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.