S&P 500 Price Forecast – stock markets roll over a bit

The S&P 500 fell during trading on Thursday as we may have gotten a bit overextended during that rally on Wednesday. Having said that, we are also overextended to the downside so expect more volatility as not only are we at extremes, volume might be an issue.
Christopher Lewis
S & P 500 daily chart, December 28, 2018

The S&P 500 has rolled over a little bit during the trading session on Thursday, wiping out about half of the gains from the previous session. Ultimately, I think that rallies are to be sold, and I think that the 2500 level will be the initial barrier that we can get above, and then the 2600 level. The 2600 level above it was massive support in the past, and it should now be massive resistance. I think that the S&P 500 will continue to struggle, and eventually we could go even lower. The 50 day EMA above is very negative, and I think will also offer resistance.

S&P 500 Video 28.12.18

I think that it’s very possible that the rally that we had on Wednesday was a bit of a “bear market rally”, which typically is very significant and violent. I’m not calling for the end of the world here, but I think that we are very negative and I think there are a lot of concerns out there beyond the Federal Reserve. At this point, we are starting to worry about global growth and that of course will have a negative effect on the S&P 500. If we did break above the 50 day EMA, then I’m willing to get involved to the upside but right now I don’t think that’s going to happen anytime soon, and at this point we are probably more likely to see a fresh, new low based upon the momentum.

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