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

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.

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