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S&P 500 Price Forecast – Stock markets tread water

By:
Christopher Lewis
Updated: Jul 2, 2019, 16:18 UTC

Stock markets have done very little during the trading session on Tuesday, as we are heading towards the Independence Day holiday in America, which of course is going to crush a lot of volume.

S&P 500 daily chart, July 03, 2019

The S&P 500 continues to go sideways overall as we don’t really have a direction yet. Yes, we gapped higher to kick off the week, but since then really haven’t done anything as we are waiting for the next catalyst. The next catalyst of course will be the jobs number on Friday, as we now have gotten at least a bit of positive movement of the US/China variety. Ultimately though, we have yet to fill the gap so we could get a short-term pullback towards the 2950 level. As long as that level holds, it’s very likely that we will continue to find buyers.

S&P 500 Video 03.07.19

We also recognize the 3000 level above as a significant barrier, so if we can break above there it could send this market much higher. I think it’s going to be difficult, but in the meantime it’s likely that we are going to see a bit of volatility, but we can get a decent jobs number in America without it being too strong or weak, we could see this market continue to go higher. Obviously, we are in a bullish trend but the reality is that we don’t have much in the way of a reason to expect the market to rally between now and Friday. Having said that, I don’t necessarily see a reason to start selling either. Ultimately, we are essentially in a holding pattern as we are getting ready to head into a major holiday in the United States, leaving only minor electronic trading during parts of the week.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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