S&P 500 Price Forecast – stock markets run into major resistanceThe stock markets initially pulled back a bit during the trading session on Thursday but continue to run into resistance at the 50 day EMA when it comes to the S&P 500.
The S&P 500 initially pulled back during the trading session on Thursday, slamming into the 2600 level before bouncing. That being the case, I believe that the market is going to have a big fight on its hands, and this is a great place to lose money. I would wait for an impulsive candle, because we will most certainly get one in this area as it is so important. With that being the case, I like the idea of simply sitting on the sidelines and waiting to be told where to trade. I think that we will get a lot of intraday rotation at this point, so it’s difficult to glean anything until we get a daily close.
S&P 500 Video 18.01.19
A daily close above the 50 day EMA with a strong candle at the top of the range would be a signal to start buying. Otherwise, if we get a significant break down below the 20 day EMA, with the same type of candle with conviction, then I would be more than willing to start selling. Until I get one of those couple of scenarios, I don’t really have any interest in trying to put money to work, because quite frankly it won’t take much to spook the market in one direction or the other as we continue to worry about things like the US/China trade negotiations, Brexit, and oh yeah – earnings season is going on and that of course will move the markets as well. That being the case, I think that the market will continue to be very volatile in the short term, so if you do feel that you need to be involved in the market, I would recommend very small positions.