S&P 500 Price Forecast – Trying to recover

The S&P 500 try to recover a bit during the trading session on Thursday, reaching towards the 2800 level rather quickly. This is an acute surprise, as these round numbers tend to be magnetic. Beyond that, the 200 day EMA is sitting just below.
Christopher Lewis
S&P 500 daily chart, May 31, 2019

The S&P 500 continues to grind back and forth, reaching towards the 200 day EMA early in the session only to reach back towards the 2800 level as the Americans came aboard. The question now is whether or not the rally can hold. I don’t think it dollars, but we could go as high as 2815 before massive selling comes back into the picture. Obviously, the market attitude has changed in general, but the 200 day EMA will catch a lot of attention. I am willing to accept the fact that a break above the 2820 level could send this market higher, but right now my face case scenario is that this is a rally that will offer a selling opportunity either later in the day or perhaps early next week.

S&P 500 Video 31.05.19

To the downside, I believe that we are going to go looking towards the 2750 level, perhaps even the 2700 level. Keep in mind that the US/China trade wars only getting worse, so I anticipate that it’s only a matter of time before the accumulation of minor bad news continues to weigh upon the market enough that something snaps. Bond yields continue to fall as people are buying treasuries, and then of course works against the value of stocks as well as it shows a leaving of equities. I think at this point the stock markets ability to rally is tenuous at best, so I’m looking front signs of weakness to take advantage of. Patience is crucial in trading, especially if you’re trying to short something.

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
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.
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.