S&P 500 Price Forecast – Stock Markets run into Resistance Again

The S&P 500 did pull back a little bit during the trading session on Friday again, but I also recognize that there is a downtrend that has held up now. At this point, there is a significant amount of support underneath as well though, so quite frankly there is a lot of confusion right now.
Christopher Lewis
S&P 500 daily chart, February 11, 2019

The S&P 500 pulled back a bit during the trading session on Friday as we continue to see a lot of trouble. At this point, we have pulled back a bit and what is most important to pay attention to is the fact that the shooting star from the weekly chart has happened right at the 61.8% Fibonacci retracement level. At this point, I do think that we go lower if the political situation doesn’t get better. We are almost assured of a government shutdown rather soon, and of course the US/China trade relations aren’t going anywhere. If that’s going to be the case, stock markets are probably going to take it on the chin.

S&P 500 Video 11.02.19

I would also point out just how low the volume has been on the way out. There was a much more volume attic move to the downside, so you should pay attention to that. If we make a fresh, new high, then we can go higher because it is a break of a shooting star which is a very bullish sign and could send this market looking towards the 2800 level. If we do fall from here, then I think we could go down to the 2600 level, possibly even the 2500 level after that. Overall, I think we are at a major inflection point, so we are about to see the markets make a decision.

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
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.