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

The S&P 500 rallied a bit during the trading session on Tuesday, reaching towards the 2600 level. That is an area that of course was previous support, and now should be resistance. I believe that the market will make a significant decision here in the next few days, and of course the fact that we are in the middle of earnings season makes quite a bit of sense. At this point, if we can break below the 20 day EMA, then the market should break down towards the 2500 level. Alternately, if we break above the 50 day EMA, then we should go to the 2700 level after that. Overall, I believe that we are looking at a rough couple of days, so wait until we get a daily close either above or below one of these moving averages to put money to work.

S&P 500 Video 16.01.19

At this point, I think that we are looking at a major inflection point, and overall I think that we will see massive amounts of volatility in the short term, so I would stand on the sidelines and wait for a clear and concise signal. Once we get some type of daily close that signifies the next move, then you can start to trade for a bigger target. Until then, I would be at best trading half the normal position size, maybe even less than that if you feel so inclined to trade. For myself, I’m waiting for that signal.