S&P 500 Price Forecast – US stocks follow Asian lead

The S&P 500 fell slightly during the trading session on Monday, as the 2900 level looks to be a bit resistive, but we also have a major uptrend line underneath that should continue to keep this market somewhat afloat.
Christopher Lewis
S & P 500 daily chart, October 09, 2018

The S&P 500 drifted a bit lower during the trading session on Monday as Asian stocks fell rather hard. Looking at this market, it is forming a little bit of a symmetrical triangle, but we do have a major uptrend line underneath that could have a lot to do with where we go next. Overall, I believe that we probably go back and forth as we wait to see what the rest of the world is going to do and of course how the risk appetite will be influenced by various factors globally.

I think at this point, a lot of negativity in the markets makes a bit of sense, as we are worried about higher interest rates, which of course typically works for the sellers of stock markets. At this point, the market will probably continue to be a lot of back and forth action, so I would look for short-term range bound trading type of opportunities as the market is trying to figure out what is going to do next. The 2900 level being broken significantly to the upside would be very bullish sign, especially if we can clear the 2910 handle.

Otherwise, if we break down below the uptrend line underneath, somewhere near the 2860 level, the market will continue to go much lower, and perhaps bring a negative tone to the market and quite a bit of selling going forward. At this point, I think we see a lot of short-term trading at best over the next couple of sessions.

S&P 500 Video 09.10.18

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