S&P 500 Price Forecast -Stock markets trying to find support

The S&P 500 initially fell during the trading session on Monday, but the E-mini contract turned around as the Americans came back on board, and now looks to be respecting the 50 day EMA.
Christopher Lewis
S&P 500 daily chart, October 01, 2019

The S&P 500 initially fell after gapping higher during the Monday session, fill that gap, and then turned right back around to show signs of strength again. We are currently sitting just above the 50 day EMA, and that of course attracts a lot of attention as well. Despite all of the noise that we have been listening to in the news lately, the S&P 500 is still technically in and uptrend, so therefore it’s much easier to buy this market than it is to sell it.

S&P 500 Video 01.10.19

This doesn’t necessarily mean that every time you buy the market it’s going to work out, but clearly over the last 10 years or so, every time you have bought the market you are more likely to see profits than not. The last couple of months haven’t been a whole lot different, and therefore I don’t see any reason why we don’t reach towards the highs again. This doesn’t necessarily mean that we are going to bust through there and go straight to the moon, but what it does mean is that the market is trying to go higher.

To the downside I see the 2950 level offering support as it is not only the top of the previous consolidation, it is also the scene of the 50 day EMA, something that a lot of traders will pay attention to. If that’s the case, then as long as we can stay above there I don’t see any real downside when it comes to this marketplace. If we were to break down below the 2950 handle, then the 2900 level should be supportive as well.

Please let us know what you think in the comments below

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