Christopher Lewis
Add to Bookmarks
S&P 500 weekly chart, October 14, 2019

The S&P 500 fell initially during the week, reaching down towards the 50 week EMA. The uptrend line is very much intact and therefore I think that buyers came in to pick up what they thought was cheap pricing, and now that the United States and China are talking it will come down to how that turns out in the short term, and possibly earnings season which starts next week. At this point, it looks as if we can break above the 3025 level, then the market is free to go much higher. However, if those talks break down, and we don’t know how that’s going to turn out quite yet, we will more than likely get a break down again. If we were to break down below the uptrend line, then the 2800 level comes into the picture, and that of course a break down below the 2800 level offers a potential move down to the 2600 level.

We are in an overall uptrend, but the most recent high was less impressive than the one before. Ultimately, earnings season will be what drives this market longer-term, but in the short term over the weekend we will get some type of announcement how the US/China trade talks when, so there is the possibility that we get some type of massive move in one direction or the other. The levels are pretty clear on this chart, so pay attention to them and trade accordingly. I suspect though, that there is more than likely a “by on the dips” mentality.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker