The S&P 500 has rallied significantly during the trading session on Tuesday, as it was reported that the Americans are willing to step away from the tariffs, or at least delay them due to the upcoming continuation of talks via telephone between the Americans and the Chinese. That of course helps, but at the end of the day it doesn’t actually solve anything so it’s not a huge surprise that we ran into the 50 day EMA and pulled back. The analysis from yesterday was quite simple: I suggested that the market might bounce around between the 50 day EMA, which is pictured in red, and the 200 day EMA which is pictured in blue. I’m even more convinced of this as it has offered strong boundaries.
S&P 500 Video 14.08.19
Looking at the chart, it appears that the market is probably going to simply chop around in this general vicinity, with perhaps the 2900 level being a bit of an epicenter. I do not think that the markets are ready to go out and take off to the next leg higher or lower, and I believe that the complete confusion that we have surrounding the markets right now will continue, thereby pushing the S&P 500 in both directions. The fact that we are sitting at this juncture and not really being able to make a significant move over the last several days is a perfect proxy for what we are seeing out there. Until we get a daily close out of this range, I think we simply go back and forth on short-term charts.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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