S&P 500 Price Forecast – stock markets struggle to kick off week

The S&P 500 initially tried to rally on Monday in the futures markets but continues to see a lot of resistance at the 2750 handle. Ultimately, this shows just how soft this market is.
S & P 500 daily chart, November 20, 2018

The S&P 500 initially tried to rally during the trading session on Monday, reaching towards the 2750 level. By fighting the resistance that we did there, we turned around to fall significantly. I believe that the 2700 level will be a target, and perhaps we could break down below there. If we do, then it opens the door to the 2650 handle, possibly even the 2600 level after that. I do recognize that if we were to break above the 2750 handle, then the market could go looking towards the 50 day EMA as shown on the chart.

S&P 500 Video 20.11.18

A daily close above that level would be a very bullish sign, perhaps reaching towards the 2820 handle again. That would be bullish enough for me to start buying, so I am definitely paying attention to the 50 day EMA. However, the one thing that we do continue to see as the market simply cannot hang onto gains due to a variety of reasons. One of the most obvious ones is the trade tensions between the United States and China, which of course affects global trade and the profitability of many of the world’s largest corporations. Beyond that, we have the whole mess between the United Kingdom and the EU, and quite frankly there are concerns about global growth slowing down as well. With all of that being the case, it’s obvious that we are in a relatively difficult situation, at least for risk appetite. With that, I believe that the sellers will continue to fade this market.

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