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

The S&P 500 went back and forth during the trading session on Thursday, as we tested the 50 day EMA and of course the previous uptrend line. That being the case, the market certainly has a lot to think about in the short term.
Christopher Lewis
S&P 500 daily chart, June 07, 2019

The S&P 500 went back and forth during the trading session on Thursday, as we are testing the 50 day EMA, and of course the bottom of the previous uptrend line. At this point in time, I think that the market is trying to rally, but there is a lot of resistance near the 2850 level to keep the market down as well. Quite frankly, with the jobs number coming out on Friday we can anticipate a lot of noise. However, if we do break above the 2850 handle, then the market is free to go towards the 2900 level. The fact that we didn’t do much during the day on Thursday shouldn’t be much of a surprise though, because people are going to be a bit cautious about getting aggressive just before the Nonfarm Payroll Numbers.

S&P 500 Video 07.06.19

To the downside, I believe that the 2800 level should be support, and of course the blue 200 day EMA level below there should supportive as well. Ultimately I believe that this market is one that should continue to be noisy and emotionally driven, as we have a lot of concerns when it comes to the US/China trade discussions, whatever happens between the United States and Mexico, and of course a whole host of other issues as to whether or not global growth is going to continue. Ultimately, the Federal Reserve looks as if it could start to ease monetary policy again, so that might be a little bit of a sugar high but I think it is short-term at best.

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