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Christopher Lewis
S&P 500 Price Forecast - Stock markets recover slightly on Tuesday

The S&P 500 rallied slightly during the trading session on Tuesday, reaching towards the 50 day EMA before pulling back slightly. We are essentially hovering around the 2860 handle but I think at this point we need to look at the fact that there is an uptrend line underneath, as well as one above. This isn’t that unusual to have several different trendlines, so it makes sense that we could continue to see this market go back and forth in this area. However, I think that the 100 point range that we find ourselves in right now will eventually be resolved in one direction or the other. Once we do, it should be a rather big move based upon what we have seen.

S&P 500 Video 22.05.19

The 2800 level underneath is massive support, going back several months. I think a break down below that level would be rather alarming, and could send this market much lower, probably based upon the US/China trade situation or perhaps the Federal Reserve sounding more hawkish than expected. To the upside, if we can break above the 2900 level, then we could go looking towards the 2950 level. When you zoom out on this chart, it’s not a stretch to see a potential double top, and I think that all of the uncertainty may finally be starting to try to catch up with this market. That doesn’t mean that we should be sellers right now, just that we should recognize that the area between 2800 and 2900 is absolutely crucial.

Please let us know what you think in the comments below

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