S&P 500 Price Forecast – The stock markets continue to find buyers

The S&P 500 went back and forth during the trading session on Monday, as we are trying to figure out what to do next when it comes to risk appetite. After all, there are a whole whirlwind of headlines out there that can continue to cause issues.
Christopher Lewis
S&P 500 daily chart, May 21, 2019

The S&P 500 initially sold off rather drastically in the Asian session, as futures traders reacted to the Chinese threatening the Americans in a bit of a tit for tat scenario. Ultimately, this is a market that has plenty of support underneath and I think it’s only a matter of time before the buyers come back in on dips. However, if we were to break down below the 2800 level, the market could go much lower. Keep in mind that this is all about headlines and emotion right now so regardless you will need to keep your position size relatively small.

S&P 500 Video 21.05.19

We are currently chomping around the 50 day EMA, so that of course rings in a bit of technical trading. This is a market that continues to find buyers on dips, and as a result you have to come up with a “line in the sand.” The 2800 level being broken would be drastic negativity. However, on signs of support we could reach towards the 2900 level. A break above that level could send this market much higher.

It’s very difficult to trade this market for anything more than short-term move, so look at it as either “overbought” or “oversold.” At this point in time I think that it’s paramount that you stay on the sidelines and pick your spots accordingly. I would trade 15 minute intervals using the 100 point range as your boundary in the meantime.

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

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US