S&P 500 Price Forecast – stock markets run into resistance

The S&P 500 rallied slightly during the trading session on Tuesday, as we are starting to approach a major resistance barrier. At this point, the market has a lot of work ahead of itself if it wants to continue going higher.
Christopher Lewis
S&P 500 daily chart, February 20, 2019

The S&P 500 has rallied slightly during the trading session on Tuesday, but we are getting relatively close to the 2800 level, an area that has been massive resistance as of late. A simple sign of exhaustion should send this market lower, perhaps reaching towards the 2750 handle, and perhaps down to the 2700 level after that. It is difficult to break above this area, but the fact that it has been a bit of a “triple top” previously should keep that intact. However, if we do break above this area, things change rapidly.

S&P 500 Video 20.02.19

I find it very interesting that we have the US/China trade talks going on this week, which of course will have a massive influence as to where we go next. Ultimately, the next couple of candles will probably be crucial for a bigger move. Above the 2820 handle, the market is free to go higher but obviously we are getting a bit stretched at this point, so a pullback makes a lot of sense. If we get sufficiently disappointing comment out of either the Americans and/or the Chinese, that will probably send this market straight back down. We also have the Monetary Policy Meeting Minutes coming out, from the Federal Reserve. That of course will have an influence on where this market goes next as well.

There are two major things driving this market higher, hope and optimism on the US/China deal, and of course the Federal Reserve being easy. If those start to falter, look out below.

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

Top Promotions

Top Brokers

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.